GM to pay factory workers record bonuses

gm_assembly_line_flint.top.jpgFactory workers, like this one building a Chevrolet Silverado pickup, will enjoy the biggest bonuses GM has ever paid. By Peter Valdes-Dapena, senior writer


NEW YORK (CNNMoney.com) -- General Motors will pay bonuses of at least $4,000 each to its factory workers -- by far the largest bonuses the automaker has ever paid its blue-collar employees.

Before this, the biggest bonus GM (GM) ever paid its union employees was $1,775 in 1999. Exact details of the bonus amounts paid will be revealed after GM outlines its annual profit later this month.

"This payout is a good example of how we are sharing in the success of the New GM," the automaker said in a letter to its factory employees who are member of the United Auto Workers union.

The text of the letter was published by the Flint Journal.

GM is also paying bonuses to its non-union white collar employees. Those bonuses could be as much as 50% of a worker's salary in some cases. For the vast majority of those workers, bonuses will be between 4% and 16% of the employee's base pay.

Ford Motor Co. (F, Fortune 500) is expected to pay its factory workers bonuses of about $5,000 each.

GM received a bailout of $50 billion by the U.S. government, starting in early 2009, a plan that included giving the government a 61% stake in the company.

The government recouped much of this money when it sold GM shares during the automaker's successful initial public offering in November. But about $27 billion in bailout funds remain unpaid. Much of that will be repaid as the government sells more of its shares.

The bailout and restructuring relieved GM of the bulk of its debt, helping the automaker to become profitable. Meanwhile, GM sales have increased as the automaker's product line-up has become more competitive with foreign rivals in terms of quality and fuel economy. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Find Your Next Car
Index Last Change % Change
Dow 17,856.78 -278.94 -1.54%
Nasdaq 4,927.37 -55.44 -1.11%
S&P 500 2,071.26 -29.78 -1.42%
Treasuries 2.24 0.13 6.06%
Data as of 12:18am ET
Company Price Change % Change
Bank of America Corp... 16.22 0.22 1.38%
Apple Inc 126.60 0.19 0.15%
Citigroup Inc 53.06 -0.50 -0.93%
Chesapeake Energy Co... 15.17 -0.75 -4.71%
Pfizer Inc 33.97 -0.50 -1.45%
Data as of Mar 6
Sponsors

Sections

E-commerce giant Amazon opens its own digital store on Tmall, an Amazon-like site owned by one of China's largest internet companies, Alibaba. More

The U.S. added 295,000 jobs in February and unemployment fell to 5.5%, the lowest level since May 2008. More

E-commerce giant Amazon has opened its own digital store on Tmall, an Amazon-like site owned by one of China's largest internet companies, Alibaba. More

Frank & Oak, Airbnb, and Net-a-Porter are just a couple of companies investing in the antiquated medium. More

There's no end to the creative ways scammers will try to steal your identity and your money. And tax time is one of their favorite times of the year. Here's how to spot a top scam and protect yourself. More