Ford Motor Company (NYSE:F) is going to pay the United Auto Workers (UAW) massive profit-sharing checks this year as the company reported $8.8 billion in profit last year in North America. Around 47,000 eligible U.S. hourly employees will receive around $8,800 each on March 13. The individual profit sharing payments may be higher or lower depending on employee compensated hours. These payments are part of the union contract with Ford, which was signed in 2011. The sides decided to opt for profit sharing and jobs instead of annual pay raises.
While the four-year contract was signed, UAW president Bob King said that the union should not fight against the auto companies. King said that the auto companies should work together and share in the company success. The last record profit-sharing payout was in 2012 after eligible employees received around $8,300.
Ford reported Q4 2013 profits at $3 billion and full-year results of $7.2 billion. Ford’s full-year revenues increased 10% to $146.9 billion in 2013. Ford’s pre-tax profit in North American was $8.8 billion, which is a $438 million increase compared to 2012 and the highest since 2000. Ford’s Asia-Pacific-Africa division saw $415 million profit compared to a $77 million loss in 2012. In South America, Ford saw a $34 million loss. In Europe, Ford reported a $1.6 billion loss for the year. The Ford Credit division reported pre-tax profits at around $1.8 billion, which is up $59 million.