As U.S. automakers Ford, GM and Chrysler continue to recover, the auto workers and their communities alike will reap the benefits of recently announced profit-sharing checks, said Art Wheaton, automotive industry expert and senior lecturer at Cornell University’s ILR School.
“As the U.S. auto industry continues to recover, local communities are sharing in the success. Ford, GM and Fiat Chrysler are announcing profit sharing checks. These checks can be thousands of dollars for workers to be spent in the local economy.
“Profit sharing has been the primary source of additional revenue for these workers since many have not had a raise in almost 10 years. By using profit sharing formulas workers and their local communities get bonuses in good years while not promising higher wages in lean years.
“The local communities benefit as these checks go toward taxes, restaurants, schools and other products and services in the area.
“The auto industry is also hiring again, with Ford announcing more than 1,500 new jobs to help build new successful vehicles.”