Reduction in Payouts for Auto Workers
United Auto Workers (UAW) employees at Ford, Stellantis, and General Motors may receive significantly smaller year-end bonuses. Due to losses related to tariffs, the payout amount could decrease by $3,000–$5,000. The biggest problems are expected for Stellantis workers, as the company may not pay out any bonuses at all if profitability in North America remains below 2%.
Last year, employees received bonuses of over $10,000, but this year the situation has changed. Ford may reduce payments by 27–36%, and General Motors by 31–40%. Stellantis has already spent $380 million on tariffs in the first half of the year, and costs may rise.
“For auto workers expecting bonuses, the tariff policy is a clear hit to their bonus,” said Patrick Anderson, CEO of Anderson Economic Group.
Impact on the Industry
Previously, UAW President Shawn Fain called on automakers not to pass costs on to consumers and to provide financial support to employees. However, no measures to compensate for the losses are currently foreseen.
The size of the bonuses has become an important indicator not only for workers but also for assessing the state of the auto industry. The reduction in payments indicates a difficult situation in the sector, especially against the backdrop of rising costs due to tariff policy.