GM Union Workers to Get Profit-Sharing Checks

Union workers could get profit-sharing checks of up to $7,000.

General Motors' blue-collar workers, including those working at the Wentzville plant, will get profit-sharing checks up to $7,000 in March, according to a USA Today report.

GM made largest profit ever in 2011 when it announced Thursday that the company made $7.6 billion, a 62 percent increase from the previous year.

Locally, more than 1,700 workers should receive a check, said Robert Wheeler, communications manager for the Wentzville assembly plant. 

From USA Today:

North America led the way with a $7.2 billion pretax profit. But problems surfaced that could hurt future earnings. GM lost $700 million before taxes in Europe and lost $100 million in South America.

GM'S fourth-quarter profit was flat with 2010. GM earned $500 million, or 28 cents per share. Revenue rose 3% to $38 billion. Before one-time items, GM earned 40 cents per share

Analysts expected earnings of 42 cents on revenue of $37.9 billion.

GM's chief executive, Daniel F. Akerson, called the year “another step in the right direction” but said the performance in Europe was not acceptable, according to a report in the New York Times.

“Obviously, we still have a lot of work to do in some areas and we’re taking the necessary corrective actions to get the ball over the goal line,” Mr. Akerson said in a conference call with analysts and reporters.

Meanwhile, according to the Wall Street Journal, the company's white-collar work force is in for a pay freeze and reduced bonuses.

On Tuesday, the company said it was getting rid of its annual pension contribution system for its employees. In its place, future retirement contribution will be made into a 401(k) plan. The plan begins in October.

The Wentzville plant currently employs about 1,400 people and by the time the new General Motors facility opens in 2014, that figure could rise to as many as 3,000.

Crews are expected to begin work on General Motors' new Wentzville facility this month with the new Chevrolet Colorado rolling off the assembly line in August 2014.

Ray Antonacci February 17, 2012 at 03:18 PM
It's nice to hear some good news for the workers in our area. The profit sharing check doesn't compare to the loss of the pension contribution, though.


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