If you're one of the many people who have suffered as a result of General Motor's massive ignition-switch recall it might please you to know that company executives will be affected as well.
The cost of the controversial recall will cut into GM executive's bonuses for 2014, even as the United Auto Workers union's profit sharing payments exclude those billions, according to Bloomberg, citing two people who asked to not be identified.
The Detroit-automaker is paying bonuses of up to $9,000 to UAW members, setting aside $2.4 billion in recall-related expenses.
GM doesn't normally count one-time charges like recalls or restructuring costs when figuring out hourly-worker profit sharing since the payment is designed to reflect ongoing performance of the business, spokesman Tom Henderson told Bloomberg. Those fees will be excluded from bonus calculations for most of GM's "white-collar staff," which are based on a mix of regional and global results.
GM, which discussed bonuses on a webcast with salaried workers on Thursday, won't treat top executives the same way.
When it comes to GM's union workers, who earned $7,500 in profit sharing in 2014, the bonus checks could be a goodwill gesture from higher-ups before they figure out a new four-year labor deal. For reference, the current deal expires this September.
The UAW is already trying to get pay increases for its members. Veteran employees make $28 an hour currently at GM and Ford. They haven't received a raise since 2005. Newer hires brought in after the 2007 labor agreement make $16.28 an hour, according to Bloomberg. The union feels both groups are due for a pay increase.
"Where does the responsibility sit?" Maryann Keller, an independent consultant in Stamford, Connecticut said to Bloomberg. "Ultimately it rests with the senior executives. The rank and file hourly person should not be penalized for something that had nothing to do with the nature of their job."
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
