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Following a strong 2012, UAW officials have told members working for Ford (F) to expect...

Following a strong 2012, UAW officials have told members working for Ford (F) to expect profit-sharing checks that could be above $8K, the WSJ reports. For GM workers, the checks could reach $7K. When Detroit was on the brink of going under, the UAW negotiated higher profit-sharing payments in exchange for wage and benefit concessions.
Comments (6)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    (Words can be Fun!)

     

    Editor. Can we spruce up the prose?

     

    Detroit has gone under. "Detroit" and "fatcat automakers" are not synonymous any more than "labor leaders" represent all "laborers."

     

    Still, it's comforting to see that the subsidies weren't completely wasted.
    26 Dec 2012, 09:32 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6358) | Send Message
     
    Amazing how that works. Focus more on profit sharing instead of just taking cash.
    26 Dec 2012, 09:34 AM Reply Like
  • sallykkb
    , contributor
    Comments (26) | Send Message
     
    Wouldn't it be nice if Unions saw the light, instead of trying to suck all the blood out of companies that they can, tho not sure how that would help the people of CA where Public sector unions in the State, continue to demand higher wages and benefits than employees in the private sector get. Politicians created the problem there, for votes, I say, let politicians figure out how to solve the problem, without private sector workings being forced to bear the burden.
    26 Dec 2012, 11:57 AM Reply Like
  • Looking for the MERGER
    , contributor
    Comments (21) | Send Message
     
    Nice thoughts... but it is the PRIVATE SECTOR that creates the jobs and the revenue that allows the DEMOCRATS to buy the votes they need and lie like, well, lie like Democrats...
    26 Dec 2012, 02:53 PM Reply Like
  • Tdot
    , contributor
    Comments (4219) | Send Message
     
    The UAW contract provides for approximately a dollar for each worker, per million in Ford's US automotive profits.

     

    As of 3Q12 Ford's global profits were $6.3B before taxes, and $4.4B after taxes. After special items, the net earnings for the total company were about $4.1B, or about $1.02 per share. The current estimates call for Ford delivering about $1.35 per share for the year, or about $5.4B total.

     

    But - about 20% of those global profits are from Ford Credit's finance operations, which do not count as US Automotive profits. On the other hand, Ford expects to show losses of about $1B in Europe, and that is already baked in to the earnings estimates. So these two factors roughly balance each other.

     

    Best guess is that Ford's US Automotive sector profits for 2012 will ring in around $6B for the year, producing a profit share guess of around $6,000 for each UAW member. HOWEVER. Ford already pre-paid a portion of the profit sharing for 2012, so the balance due may be about half that.

     

    And after the IRS gets their third, the final check amounts could be pretty small. For the UAW to expect $8,000 each in profit sharing payments this spring, based on Ford's 2012 earnings, well that may be a bit of a stretch; and they could be setting up the membership for some serious disappointment.

     

    Of course, we won't know until around Jan 22-25, when Ford's profits are scheduled to be announced, and there may be a lot of "special items" coming in to play in the 4Q12, particularly with regards to pension and other buyout activities. There could also be some hedging against the Fiscal Cliff, with regards to protecting for tax hikes. The final profit sharing figure will probably be announced in mid-February, for payment in March.
    26 Dec 2012, 01:04 PM Reply Like
  • Larry Dickman
    , contributor
    Comments (61) | Send Message
     
    "For GM workers, the checks could reach $7000"? Wasn't just getting to keep their jobs enough of a bonus? How about paying back the millions of poor slobs (like me) that provided the bail out money before getting any bonus checks?
    26 Dec 2012, 02:20 PM Reply Like
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