UAW Celebrated Tariffs, But Now Workers Risk Losing Thousands | Carscoops

      Auto workers are preparing for a financial setback as profit-sharing diminishes due to increasing tariffs and declining industry margins.

      United Auto Workers (UAW) employees at Ford, Stellantis, and General Motors are facing a difficult conclusion to the year. Tariffs set by the Trump administration have already cost automakers billions, and consumers are likely to bear these expenses. More alarmingly, UAW members will directly forfeit thousands of dollars.

      Each year, UAW members receive profit-sharing payments from their employers. In recent years, these payouts reached record levels, but that trend is coming to an end. Last year, the Big Three distributed checks exceeding $10,000.

      Significant Decrease in Profit-Sharing

      This year, that amount will likely decrease by $3,000 to $5,000. Ford employees could see reductions between 27 and 36 percent, while GM employees might lose 31 to 40 percent of their profit-sharing income.

      Workers at Stellantis face an even tougher situation since the company only issues profit-sharing checks when North American profit margins sit at 2 percent or above. In the first half of this year, the margin was -3.4 percent. Consequently, Stellantis may not provide any payouts if this trend continues, which is what the company anticipates.

      The company has already incurred $380 million in tariff expenses during the first half of the year, with expectations for even higher costs in the latter half.

      A Vital Indicator for Workers and Industry Health

      "For auto workers who are waiting for profit-sharing checks at year-end, tariff policy is a direct hit to their bonuses," stated Patrick Anderson, CEO of Anderson Economic Group, in an interview with Auto News.

      He noted that these checks have become a significant indicator of individual compensation as well as overall industry health.

      "It has been a crucial mechanism illustrating to both employees and management that higher sales and company profits result in better payouts for everyone," Anderson explained. "The amount of the profit-sharing check has become one of the most vital metrics for auto workers and, to some extent, a barometer for the auto industry's well-being."

      Contradictions in Policy and Impact

      Significantly, all this unfolds after UAW President Shawn Fain praised President Donald Trump in March for addressing the consequences of free trade that have negatively impacted working-class communities for years. Simultaneously, he called for automakers to cover the costs of tariffs without passing them onto consumers.

      He emphasized that "Workers must be protected from any adverse effects during the reshoring process, with necessary financial backing from the federal government." As it stands, it appears that none of this is likely to materialize at any level.