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Chrysler workers to get $1,750, Employees get 2nd half of signing bonus early, in time to shop

December 1, 2012
Chrysler workers to get $1,750
Employees get 2nd half of signing bonus early, in time to shop
By BRYCE G. HOFFMAN / The Detroit News
Just in time for last-minute holiday shopping, Chrysler Group LLC’s 26,000 U.S. factory workers will get $1,750 bonus checks.

The Dec. 21 checks are the second half of workers’ bonus for signing the contract between the company and the United Auto Workers in 2011.

Workers at General Motors Co. and Ford Motor Co. received full signing bonuses up front, but Chrysler workers only received half of their $3,500 last year.

The rest was payable when the company, which went bankrupt in 2009, achieved “sustained profitability” for four consecutive quarters.

The $381 million third-quarter profit that Chrysler reported in October represented the third-straight quarter of profits for the company.

Fourth-quarter results are not due out until January. But Chrysler said Friday it is waiving the requirement and paying the bonuses now.

“This waiver of the four-quarter requirement is made in recognition of the tremendous contribution you have all made to the performance of our facilities and to the revival of Chrysler,” CEO Sergio Marchionne said in a message to workers Friday morning. “You have also demonstrated a great level of commitment and cooperation in building a solid future for our company.”

The UAW welcomed the announcement.

“We appreciate Sergio’s and Chrysler’s willingness to recognize the contributions of our members at this time of the year,” said UAW Vice President General Holiefield, head of the union’s Chrysler division, adding that the money will help a lot of other people besides Chrysler workers.

“It doesn’t just benefit them,” he said. “They will spend that money in their communities, providing a well-needed boost to local economies.”

(313) 222-2443

Melissa Burden contributed.

Additional payouts
Chrysler Group LLC, Ford Motor Co. and General Motors Co. hourly workers will receive annual quality performance and competitiveness bonus payments this month for meeting quality benchmarks.
GM will pay about 44,000 U.S. hourly workers bonuses of $250 Dec. 7. Most Chrysler hourly employees will receive $500 bonuses on Dec. 7. Some will receive slightly more.
Eligible Ford workers should receive a $250 annual competitiveness bonus during the week ending Dec. 9, according to their contract with the UAW, which represents about 42,000 Ford hourly workers.
These bonuses are separate from the contract signing bonus paid at GM and Ford, and coming Dec. 21 for Chrysler workers.

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