Around 7,100 FCA Chrysler employees at the Kokomo and Tipton plants will receive a $7,280 profit-sharing payout this year as part of the contract agreement negotiated in 2015 between the company and the United Auto Workers union.
FCA announced Thursday it will make the profit-sharing payment to the 44,000 eligible UAW-represented employees across the country. Workers will receive the money on March 13.
In Kokomo and Tipton plants, the payment will boost the total payroll by more than $51.6 million.
The 2019 profit-sharing payment is based on the adjusted performance margins of the North American region, and on individual compensated hours. This year’s payout marks an 18-percent increase from last year’s, which was on average $6,000. The payment in 2017 was $5,500.
U.S. hourly employees have now received on average more than $36,000 in profit sharing since 2009.
The payment, which recognizes hourly employees’ contributions to the company, was part of the negotiated 2015 UAW-FCA Collective Bargaining Agreement.
That agreement nearly led local UAW members to strike at the local FCA plants in October 2015, after the local union decisively voted down a tentative collective bargaining agreement the week before. Ultimately, the final agreement gave raises to all workers.
The announcement comes after the company earlier this year confirmed it plans to invest nearly $400 million toward expanding and equipping the Indiana Transmission Plant II, located on North Ind. 931, for production of a new engine.
The investment is expected to allow assembly of the GMET4 engine, marking the first time FCA has built an engine in Indiana. The engine is currently being made in Italy, according to union officials.
The new production will require a workforce of more than 1,000 by the end of 2021. State officials say those jobs will be filled through a combination of FCA’s current employees and new hires, according to information distributed by the Indiana Economic Development Corporation.