LANSING, MI (WLNS) – You know what they say: hard work pays off.
Wednesday, that phrase proved to be true, after more than 49,000 GM workers learned they’d be getting an extra bonus in their paycheck.
It’s all about giving credit, where credit is due, and General Motors has been doing that for years through a profit-sharing plan negotiated into workers’ contracts.
GM brought in $9.7 billion in earnings last year, which is more than double the dollar amount from 2014. Because of those record numbers, 49,600 workers will be earning a profit-sharing pay-check of $11,000.
The year 2015 was a good year for General Motors. The team rolled out the 6th Generation Chevy Camaro, Chevy Malibu, and diesel models of the Chevy Colorado and GMC Canyon, driving in record number profits for the company.
The best part of it all, the workers who helped build that success, will benefit from it by taking home a bigger payback at the end of this month.
“We should reap in some of the benefits also when things get better, ya know we went through it with them in the downside of it and did the things that needed to do to survive, and now that things are better, they’ve had some of the highest recorded earnings in the history of General Motors and they share it with the membership as they should,” Mike Green, President of UAW Local 652 said.
It’s all based on time worked. The more time put in, the more money will come out.
If you worked 1,850 hours in 2015, you’ll get the maximum payout of $11,000.
“And when you put money in the middle class hands, they spend the money and that’s what makes the world go round,” Green said. “So you know people are going to catch up on bills, they’re going to buy cars, they’re going to buy houses.”
Which then means, that money goes into the local economy.
While it may only be temporary, Eric Scorsone, Economist from MSU said businesses in the Greater Lansing Area will see a slight boost.
“It’s not going to have a long term impact per say, but it will certainly effect the economy in the short term as people spend money on everyday items or buy items they wouldn’t have bought otherwise,” Scorsone said.
General Motors actually beat out Wall Street’s estimates on their stocks last year, which was fueled by high volumes of SUV and truck sales.
Something worth mentioning; in 2009, GM went bankrupt, 6 years later in 2015, they’re reporting record profit numbers.
That not only benefits the Greater Lansing Area, but the state of Michigan as well.