FCA Will Pay $2,000 Bonuses to Hourly and Salaried Employees In Q2 As A direct Result Of New Tax Law

[Gorehamj]

John Goreham

Contributing Writer, GM-Trucks.com

1-12-2018

 

Fiat Chrysler Automobiles, U.S. (FCA US) announced today that it will pay both hourly and salaried workers a $2,000 bonus in Q2. Sergio Marchionne, Chief Executive Officer, FCA, announced the move, saying, “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”

 

This type of bonus payment linked to the new tax law is becoming popular among all sectors of the United States economy. Every type of company from telecommunications, to banking, to large retail, has recently announced a similar type of bonus. The FCA bonus is about double the average being paid out.

 

President Donald Trump mentioned the move in one of his many Twitter tweets, saying, “More great news as a result of historical Tax Cuts and Reform: Fiat Chrysler announces plan to invest more than $1 BILLION in Michigan plant, relocating their heavy-truck production from Mexico to Michigan, adding 2,500 new jobs and paying $2,000 bonus to U.S. employees!”

 

FCA’s official statement may be in response to skeptics who are calling these bonuses false, or looking for fine print exclusions. FCA says in its official announcement, “The payment, which recognizes employees for their continued commitment to the Company’s success, will be made in the second quarter of this year, and will be in addition to any profit sharing and salaried performance bonuses that employees would otherwise be eligible to receive in 2018. The special bonus will be paid to all eligible employees of the FCA automotive and components operations in the U.S.”