Twin City Telegraph: Professor Marick Masters on why investors like Detroit automaker-UAW profit-sharing checks

Factory workers at the Detroit Three auto plants pay close attention to annual earnings reports, perhaps as much as the big institutional investors and financial analysts. Why? Because hourly employees whose contracts were negotiated by the UAW share the profits when companies do well and share the pain when profits dip. “Profit sharing is a means of sharing the wealth of a company with its employees, and it is intended to provide incentives for employees to work efficiently and effectively in order to raise profits,” said Marick Masters, a business professor at Wayne State University. “In the auto industry, these profit sharing packages have been lucrative for UAW members. I think it’s mutually beneficial for both.”

Full story in Twin City Telegraph

 

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