Chrysler, Awash In Profits, To Give Every Worker $2,250

Chrysler shares profits with workers.

Chrysler workers will be reaping the benefits of the automaker's turnaround. Four years after the Chrysler Group LLC was bailed out by the federal government, the company is awash in profits, reporting a 2012 net income of $1.7 billion, as was reported by AOL Autos.

And the company CEO announced Wednesday it will share the good fortune: Each worker will receive a performance award or profit-sharing check, says the Detroit Free Press.

"There can be no more doubt that our comeback is real," Chrysler CEO and chairman Sergio Marchionne, said in an email to workers, adding that the "credit for our turnaround is yours."

The announcement, which was made via email, didn't specify the exact amount being granted to Chrysler workers. But according to Chrysler's current contract with the United Auto Workers, eligible union members should expect to receive a check of about $2,250, reports the local Michigan news website, MLive.com.

In his email to workers, Marchionne was heralding the moment as a turning point for the Auburn Hills, Mich.-based automaker.


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The decision to share the company's profits is unusual -- but seems to be coming more common. Just a few months ago, New York-based publisher Random House Inc. told its workers at the Christmas party they'd all be eligible for a $5,000 check. The gift was a result of the success of the Fifty Shades of Grey erotic trilogy, among other titles, CEO Markus Dohle told workers at the Christmas party. In total, the books have sold 35 million copies within the United States as of December, according to The New York Times.

AOL announced to its employees in December that they would all be eligible for a $1,056 bonus to celebrate last year's sale of AOL patents to Microsoft Inc. for $1.056 billion.

UPDATE: Since the bailout, the Chrysler Group has paid back its $5.1 billion loan, but the old company from before the restructuring, known as "Old Carco," has not paid its government loan of $1.3 billion, as was reported by Politifact.

What do you think? Do employers have an obligation to share big gains with workers? Share your comments below.

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happys.pizza

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December 16 2013 at 8:09 PM Report abuse rate up rate down Reply
Dennis Hilliard

Everyone who has posted here has a choice and that would be me also, DON'T BUY THERE CRAP! if you believe what American was built on you won't. If you think the bailout was the right thing to do then any business in this country should be bailed out that needs help even if it was the fault of just poor business practice like Chrysler.I FOR ONE WILL NOT BY ANY UAW BUILT CAR ANYMORE.

February 07 2013 at 3:34 PM Report abuse rate up rate down Reply
llmahnke1

One more thing - if you don't have ANY manfacturing in this country and we have to go to war like in WWII where do you think tanks, bombs, etc. would be built? Read!

February 05 2013 at 2:32 PM Report abuse rate up rate down Reply
llmahnke1

Wow - I'm amazed by the stupid comments left on here. #1 - only the big fat cats are getting the bonus. My husband works on the line and he's getting the profit sharing bonus, #2 I won't buy a UAW car - heh jerk - where do you work so I can NOT do business there. Real American. #3 I'm willing to agree with the statement that the haters are from the south and probably on welfare or getting some kind of SUBSIDY that I and my husband PAY for with our tax dollars. #4 The employees SHOULD get a bonus they took pay cuts when the company was down and many were laid off losing some of their salary. Now that the company is doing better the ones that stuck by should reap the awards.

February 05 2013 at 2:29 PM Report abuse rate up rate down Reply
wlouche

Great job Fiat for turning the company around.

February 02 2013 at 4:29 PM Report abuse rate up rate down Reply
jjhd98

Great Job Chrysler! Getting a bail-out loan, paying it back in "full" 4yrs early and becoming manufacturing and financially productive after Daimler came-in, squeezed you out of your capital and then discarded you like an empty can. One of today's better News Stories in this economic disaster of our U.S. economy. As a veteran, this is something I am grateful for within the U.S. and North America overall. "Thank you."

February 02 2013 at 1:44 PM Report abuse +1 rate up rate down Reply
arenadood

Good for Chrysler and their workers, enjoy the windfall.

February 02 2013 at 11:39 AM Report abuse +2 rate up rate down Reply
scottdrums

It's nice that they are giving their employees a bonus,but Chrysler should be forced to repay MY tax dollars.

February 02 2013 at 10:53 AM Report abuse rate up rate down Reply
1 reply to scottdrums's comment
Maureen and Mike

Agreed!

March 13 2014 at 12:16 PM Report abuse rate up rate down Reply
Vic

I would like the 12,000 shares of the OLD SHITTY GM stock that the government took away from me when they allowed them to go bankrupt. If the union workers are getting bonuses now that the company is making money then where the hell is my investment money?

February 02 2013 at 10:35 AM Report abuse rate up rate down Reply
1 reply to Vic's comment
wlouche

Fiat owns Chrylser not GM. American taxpayers lost billions on GM.

February 02 2013 at 4:35 PM Report abuse rate up rate down Reply
yankeedoug1121

so maybe after gov Scott gives the teachers that $2500.00 a year he might want to help out those on maintenance who have gone a couple years with no ZERO raise and a couple times in the last 5 years when they got 1.8 percent that didn't even cover the cost of the insurance increase by that same school districts put on the people . in addition to the people now pay a good part of retirement . but with cost of everything gone up they have fallen behind in cost of living. working for gov is not always as sweet as people like to think. for some yes for those little folks who keep up the schools no !

February 02 2013 at 10:28 AM Report abuse -1 rate up rate down Reply

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