Profit Sharing Spurning Local Economies
The Jeep plant in Toledo, OH is where the famed Jeep Wrangler is built and will continue to be built as a new generation begins. This is also a location where much of the FCA profit sharing money will be spent when union workers receive their profit sharing checks this month. This comes at the same time as many tax returns are filed and tax refunds are issued as well, making it easy for the employees of FCA to put money back into their local economy and have the money to put down on a new vehicle that will be right for them to enjoy the ride wherever they need to go.
Currently dealerships in the area have experienced slower sales than what they had at the end of the 2016 calendar year, but dealers seem confident this will turn around and become another banner year for the company. These profit sharing checks that are coming in for the FCA union employees average $5,000 per employee. That amount is up from last year when nearly 40,000 employees received an average of $4,000 each which has been a total of nearly $18,000 in profit sharing checks since 2009.
Along with this announcement the economy in areas where there are FCA plants can prepare for the spike in spending that will come with it. Those who don’t buy a new vehicle will most likely spend the money on some large purchase such as a new appliance or entertainment system to make a difference in their lives. These checks are part of what the employees of this automaker look forward to each year to help them have an even more comfortable lifestyle and enjoy the benefits of the profits from the company they work for.
The profit sharing might be a bit confusing to some considering FCA is still carrying more debt than cash, but profits have to do with expenditures of the current year, not necessarily in the debt that was created in the past. While some profits are heading to the debt to help pay down what FCA owes after taking over Chrysler a few years ago, these employees have negotiated the profit sharing as part of their union contracts and have the right to enjoy these benefits. As FCA continues to move toward a more profitable company these checks should continue to rise and become more substantial.
For some, the profit sharing checks are part of what they’ve been looking forward to when it comes to the upgrades they want to make in their homes, the new vehicles they want to buy and the savings they’d like to improve upon and make better for their future. Having a profit sharing program is one way FCA helps to retain employees and the future for these employees is certainly bright with the new investments the company has made to the plants in three states which will add 1,700 new jobs to the FCA plants in three states.