Back in October 2023, the United Auto Workers (UAW) union reached an agreement with Ford on a new master contract that was ratified by members shortly thereafter. Set to expire in May 2028, this new deal includes the typical pay raises, enhanced retirement benefits, and investments from the automaker that we usually see, coupled with profit sharing checks averaging $10,416, as Ford Authority previously reported – a bit higher than the previous average of $9,176. However, those funds are now in danger of falling to much lower levels, it seems.
According to Automotive News, tariffs and other factors are now set to have an impact on UAW profit sharing checks, based on current financial trajectories. Union workers could see their checks drop by anywhere from $3,000-$5,000 based on the first half 2025 financial results of Big Three automakers – Ford, Stellantis, and General Motors – coupled with guidance for the remainder of the year. Stellantis workers could receive nothing, in fact, after the automaker lost a whopping $2.7 billion in H1.
As for UAW Ford workers, they receive $1,000 for every $1 billion in adjusted earnings that automaker brings in before interest and taxes. The Blue Oval revealed that it expects to rake in somewhere between $6.5 and $7.5 billion in 2025 – factoring in $2 billion earmarked for tariff-related costs. As such, that would mean workers eligible for the maximum profit sharing payout will receive 27-36 percent less than the $10,208 paid out in March for 2024’s share.
Notably, UAW President Shawn Fain threw his support behind President Donald Trump’s tariffs earlier this year. “We’ve sat here for the last 30 plus years, with the inception of [the North American Free Trade Agreement] back in 1993-94, and watched our manufacturing base in this country disappear,” Fain said at that time. “This is the problem with our system. It’s so upside down. The billionaire class and the corporate class, they always get their profits. They always take their cut, and they always pass anything bad on to consumers. The point of tariffs is to eliminate the race to the bottom where we’re exploiting people.”
Comments
Whoops! Guess Shawn wasn’t an Economics major in school…
…. my box of tissues is getting so close to being empty.
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They should see the checks disappear because of the quality issues that Ford is plagued with on every single model. Two years into the Rear Camera Recall and we still don’t have a proper fix out. You don’t get profit sharing checks when your the number 1 recalled manufacturer.
The workers don’t engineer the cars.
They install the parts given to them in the time allowed.
Well said and are not responsible for any shortcuts that are being taken!
Thank you sir….workers have great ideas and there’s nowhere to voice it. All the company cares about is how many vehicles roll of the line and when it comes to the condition those vehicles are in, well, that’s not of any concern to the company or management. Take literally one extra second to fix something that wasn’t done properly and there’s a supervisor in your face acting like a drill sergeant threatening your livelihood because their bonus is dependent on the numbers that roll off the end, not the quality.
Oh what a shocker, more money for the waste of air stuffed suits who should be working on getting back to what their slogan USED to be! Why should the people actually doing the work reap any of the benefits!
You want to blame tariffs BS, a strike did people forget, and more recalls than any other auto company in the world!