zzdcar
Home
/
Reviews
/
Culture
/
FCA Overpaid Workers $12 Million In Unemployment Benefits And It's Taking The Money Back
FCA Overpaid Workers $12 Million In Unemployment Benefits And It's Taking The Money Back-July 2024
2024-02-19 EST 22:12:40

Image for article titled FCA Overpaid Workers $12 Million In Unemployment Benefits And It's Taking The Money Back

, an automaker that made $3 billion in operating profit last year, is having 24,000 of its workers pay back an average of $500 in unemployment benefits they received from the company after the U.S. government raised its unemployment allowance.

Prior to the Covid-19 virus outbreak, FCA’s contract with its hourly employees under the United Auto Workers union had a specific threshold of unemployment aid required to be paid by the automaker in the event of temporary layoffs.

Workers receive 74 percent of their normal 40-hour workweek pay on unemployment, and FCA has to make up the rest to satisfy the full amount of the worker’s normal paycheck.

But due to the virus and the economic shutdown that followed, the U.S. government’s unemployment benefits were retroactively increased, meaning some workers got double-pay from the government and FCA, according to :

Fiat Chrysler Automobiles says it overpaid about 24,000 hourly employees while their plants were shut down and has told them to either pay back the extra amount or have it deducted from future paychecks.

On average, the workers received $500 more in supplemental unemployment benefits than they were contractually entitled to, FCA said. The overpayments occurred because a federal coronavirus relief program retroactively increased the workers’ government unemployment checks for the week ending April 4, taking their total compensation above the level that FCA’s contract with the UAW requires during a temporary layoff.

If you multiply 24,000 workers by an average of $500 each, that amounts to about $12 million in over-payment from Fiat Chrysler. That’s just .

FCA expects workers to pay back the extra money they received either up front in a lump sum, or it will be deducted from their future paychecks in $100 weekly increments. An FCA spokesperson told Auto News that many have already repaid, and the UAW claims there are no official grievances yet (probably because nobody actually worked any hours).

On the one hand, 24,000 workers just got a free, small loan from their employer during harsh economic times that they can repay in relatively small increments in the future. If that had been planned, FCA would be heralded as a heroic employer.

But of course the bigger point here nobody likes talking about is a company that makes billions in profit refusing to embrace a small mishap and even consider letting their workers keep a nice bonus during hard times.

Where is that $12 million going to now? The snack bar in the boardroom where you all try to figure out the Chrysler 200 again?

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Culture
Entitled Tesla Jackass Parks on Stranger's Lawn, Steals Electricity for 12 Hours
Entitled Tesla Jackass Parks on Stranger's Lawn, Steals Electricity for 12 Hours
There’s sort of a stereotype of Tesla owners having this elevated sense of self-worth and entitlement since they believe that the fact that they drive a fast, luxurious electric car means they’re saving the world for the rest of us drooling simpletons. Of course, like all stereotypes, this is...
Jul 7, 2025
The 2020 Lotus Evora GT Gets Its Rear Seat Back And 6 Extra HP
The 2020 Lotus Evora GT Gets Its Rear Seat Back And 6 Extra HP
Another year, another new Lotus Evora. This time they’re calling it the , an evolution of the , which itself was an evolution of an evolution of what’s now a 10-year-old car. It’s now a little more powerful, a little faster, and still asking for almost $100,000. Just to...
Jul 7, 2025
Insurance Companies Baffled By New Driver Safety Tech
Insurance Companies Baffled By New Driver Safety Tech
Insurance companies aren’t sure about all this new, driver safety assistance tech, some consumer advocacy groups are mad at Tesla, BMW’s got batteries on the brain and more await you in this of Friday, July 26, 2019. Many new cars today can come optioned with a suite of advanced...
Jul 7, 2025
Here's Why We Don't Use Gunpowder to Power Cars
Here's Why We Don't Use Gunpowder to Power Cars
It’s a thought I am 100 percent certain you have all considered at some point. Guns use a big explosion to shoot a bullet REALLY fast, so why don’t we use the awesome power behind a speeding bullet to make a car go as fast as, well, a speeding...
Jul 7, 2025
Madrid's Car Ban Flip-Flop Shows Just How Much People In Big Cities Love Banning Cars
Madrid's Car Ban Flip-Flop Shows Just How Much People In Big Cities Love Banning Cars
Less than a month after in the city center on the justification that traffic is part of the city’s identity (yes, seriously), the city’s right-wing coalition is now poised to reverse itself and go back to the ban that has been in place since December, . Who would have...
Jul 7, 2025
Alleged Uber Driver's Steering Wheel Falls Off Mid-Ride and of Course It's an Old Land Rover
Alleged Uber Driver's Steering Wheel Falls Off Mid-Ride and of Course It's an Old Land Rover
A new video shows a woman struggling to re-install her s steering wheel during what the Twitter user who uploaded the clip claims was an Uber ride. “My Uber driver [steering] wheel came off” reads the caption for what is both a perplexing and intriguing video. We wanted to...
Jul 7, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved