Most of the 26,000 white-collar workers at General Motors Co. will get performance bonuses of 4 to 16 percent of their base salaries this year, but payments to a small number could be 50 percent or more, the company confirmed late Thursday.
Chrysler Group LLC also will give bonuses to its white-collar staff, with payments expected on Friday. Both companies needed government bailouts in 2008 and 2009 to stay in business and make it through bankruptcy protection.
GM said in a statement that the bonuses would be based on each employee’s performance as well as the company’s. The statement did not say how much on average each worker would get. Messages were left by The Associated Press for a company spokeswoman late Thursday.
Chrysler spokesman Gualberto Ranieri would not comment on the matter. Bloomberg News reported Thursday that the bonuses would average $10,000 for the company’s 10,755 salaried workers, but some who aren’t covered by government pay restrictions could get up to half their salary.
“Details regarding salaried performance awards are considered confidential employment records,” Ranieri said.
Chrysler CEO Sergio Marchionne has said the workers deserve bonuses even though the company lost money because of work they did in revamping or redesigning 16 models since the 2009 bankruptcy.
For both companies, the bonuses come less than two years after they needed government bailouts to survive through bankruptcy protection. GM received a $49.5 billion bailout, while Chrysler got $12.5 billion.
Both companies have performed far better financially than they did before bankruptcy. GM made $4.2 billion in the first three quarters of the year and is expected to post a fourth-quarter profit in the coming weeks. Chrysler lost $652 million last year but is predicting a net profit this year.
The bonus checks at both companies could draw the ire of the United Auto Workers union because they will be much larger for many white-collar workers than checks that are going to hourly employees.
At GM, hourly workers are expected to get around $3,200 each, about 5 percent of their base pay, while they’ll get $750 at Chrysler, about 1.2 percent of their base pay.
GM said in its statement that more than 96 percent of the salaried workers will get bonuses of 4 to 16 percent of their base pay. Fewer than 1 percent, the company said, will get 50 percent or more. Bonus sizes grow depending on a worker’s level of responsibility.
GM said its top 100 earners are still covered under government pay restrictions imposed on companies that received government aid. Chrysler’s top earners also are affected, but a number was not available Thursday night.
Cash salaries have been capped at $500,000, but further compensation can be made in stock. Many of the executives still will take home more than $1 million.
Really? Have they learned nothing? I would not be surprised when the backlash for this hits…
That money could be used to put more people to work not line the pockets of executives. So, we bail them out with taxpayer money, and turn around and spend it however they damned well please? With no control from the government?
Ok, where are all the dem’s screaming about this? Somehow, I don’t think you will hear anything from them. Hey, they haven’t even finished paying us the money they owe us and now they are giving everyone a bonus!
“The bonus checks at both companies could draw the ire of the United Auto Workers union because they will be much larger for many white-collar workers than checks that are going to hourly employees.” HAHAHAHA – that’s what you get for joining a union! Serves you right, you don’t deserve what the white-collar people are making becuase you aren’t smart enough to negotiate your own contract…that’s why you joined the union!
Yeah got some pols here in Illinois demanding 10 or 11 bucks an hour minimum wage referring to wall street bonuses but no mention of this type of union based bonuses using tax payer loans.
Are you kidding? I have a hard enough time making my mortgage with the increase in state tax in Illinois and then the federal will go up again and once again we will be back to square one.Need to look for a second job!!!
When will chrysler pay off the debt to the taxpayers? The Bondholders? Return the money wrongly given to the union and return that to the stockholders?
What’s abhorrent is that executives in the US make double those in Europe and 10x that of those in Japan…
Hey don’t forget the millions for the all the financial firms that got bonuses during the 2008,2009 when they were taking taxpayer money!
Yee haw!
The CEO feels that even though they lost money they should still get a bonus because they worked hard. What a crock. How many companies work hard all year and still lose money and don’t pay bonuses because bonuses are fixed on the PROFIT that you made during the year not the amount of time or energy you put into your work. They should get rid of this CEO and find one that knows how to run a company.
Another example of how sick these government bailouts were.
And ‘what’ for the retired salaried employees???? It’s take, take, take and not give, give, give. Us poor retirees!!
Good PR guys, good PR….
I though you guys have learned from the past!
You want people to buy american? You just lost some of them!
Ford’s staying smart. I suspect they think you’re pretty dumb!!!!
I purchased a brand new jeep GC 6 months ago nothing but problems a real lemon.
Really Sad…
My brother has been a white collar worker for Chrysler for 14 years. To address a few points above: (1) Chrysler has paid back the government loan; (2) people like my brother, who are mid-level execs and don’t get the union protections, have worked for several years without raises, even for cost of living; (3) not only have they worked without raises, they are often working 12-14 hour days with no overtime because they are salaried. I know when people read “executives,” they think of 55 year old men earning in the high six figures. While some of the impacted employees fall into that range, most are 20, 30 and 40 year old engineers, project managers, and others who are struggling to turn the company around and making five figure salaries.
Oh, and Ford gave their guys bonuses, too. It just didn’t make the papers.
Andcap You are completely misinformed which is obvious
From the AP this morning
***
Chrysler CEO Sergio Marchionne has said the workers deserve bonuses even though the company lost money
Chrysler lost $652 million last year but is predicting a net profit this year.
Chrysler must show a profit before it can sell stock and it hopes to do that by the end of the year. The stock sale is important because it will allow the U.S. Government to sell its ownership stake in the company. Chrysler still owes the government $5.8 billion which is hopes to repay over time.
Hey don’t forget the millions for the all the financial firms that got bonuses during the 2008,2009 when they were taking taxpayer money!
Yee haw!
They paid back their loans, which they didn’t want, with interest.
How much have the Gubbermint companies (GM, AIG, Fannie, Freddie) paid back????
@AndyCap.
My employer is not getting bailout. My pay has been frozen. The match to my 401k is at zero. I am due to take a pay cut the spring to 2013, if I still have a job. I am working 50 plus hours a week since people have been laid off around me and working extra beyond that in the hopes I can keep my job.
I work hard too
@Andcap one more thing from CNN just last week.
FORD did not take or need a bailout and
“Despite the earnings miss, full-year profits for 2010 climbed to $6.6 billion from $2.7 billion in 2009, the best since 1999.”
So I guess rewarding their employees makes sense right?
NEW YORK (CNNMoney) — When the dust settles, the federal bailout of Fannie Mae and Freddie Mac will be the most expensive government rescue of the financial crisis — it already stands at $153 billion and counting.
Even as the Obama administration unveiled its plan for reforming the firms, experts agree taxpayer losses are going to continue to climb, no matter what Congress eventually decides to do with them.
Since GM owes billions to the U.S. taxpayers still, I was wondering who would consider giving bonuses when senior citizens can’t get a COLA increase. Pay the money back you owe GM, and then do whatever you want, but I will never buy a GM car again.
Chrysler and GM need to offer competitive compensation packages to their white collar employees so that they don’t lose them. It’s easy to think of white collar workers as fat cat executives, but Andcap is right to note that many (probably the majority) are professionals such as engineers, accountants, project managers, etc. that are making five figure salaries. If other companies pay bonuses and the Chrysler and GM don’t, then the companies will lose these people and be even worse off.
Average 10K per worker?
How many people can be employeed for the total bonus amount.
These white collar workers are getting 6 figures already.
More corp CRAP, with execs getting away with BS