Hopefully by now, your supervisor has given you a sheet that explains what your lump-sum discretionary bonus is for 2005. The money is to be handed out on this week’s paychecks.
As you probably know, these bonuses are required by contract, in part to make up for the fact that most employees did not get discretionary raises in 2005. The union has emphasized to management that people want to know what the bonus amount is, what the percentage is and how the figure was determined.
This is a one-time payout. For 2006, 2007 and 2008, employees will get discretionary raises that are added to their base pay.
Here are some details about the 2005 bonuses:
The company has met its contractual obligations on the amount of money that is being handed out (which is 1% of the end-2004 payroll, annualized). In all, more than $135,000 in lump-sum bonuses will be paid out. Management has given $128,570 in bonuses to full-time employees. Part-timers will receive $7,392 in bonus pay.
Bonuses went to 244 people, including 213 full-time workers and 31 part-time workers. The people who did not get bonuses either got discretionary raises in 2005 (there were a handful who did) or were hired since Jan. 1, 2005, and were not contractually required to receive one. However, management did choose to give bonuses to some employees who were hired in 2005.