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bigtree

(86,005 posts)
Sat Mar 28, 2015, 02:59 PM Mar 2015

Record profits for my company, but they cut our 'profit-sharing bonus' in half

...didn't find out until we got the checks.

There was some surprise and some happiness when they announced we were getting our checks early...until we found that meant a shorter period calculated into our bonus. In a moment reminiscent of 'Clark Griswold' on Christmas opening his bonus check, rank-and-file employees found the checks many had counted on as an important part of their survival cut almost in half. It's not as if our pay is high (it's certainly well below union pay), and these bonuses went a long way in making up some of the difference. There was no notice that the checks would be smaller and seemingly nothing in place to make up for the months lost in the calculation for the bonus.

It's going to be just a bit more than an inconvenience for me - some things I had planned on doing with the money in the way of home improvements - but I can imagine other folks counting on the money as an integral part of their survival. What a shock that must have been. I'm home right now and haven't had a chance to speak with any of my fellow associates, but I can just imagine my own disappointment and anger magnified by someone with mouths to feed or essential bills unpaid.

Here's a 2014 picture/profile of the company's financial health after the recent takeover by another retail giant:

- Gained market share for the 10th straight fiscal year
- Lowered operating costs for 10th straight fiscal year
- Grew same-store sales by 5.2%, up from 3.6% in 2013
- Earned $3.44 per share, up 19% from 2013
- Management projects fiscal 2015 earnings between $3.80 and $3.90 per share.

Not exactly hurting for profits - most of their success attributed to price cutting and other cost-control mechanisms - it's not hard to figure where some of that bottom line earnings is coming from. I'm not exactly an economic major, and I'm certain I can be talked down and around like my store manager did in explaining the smaller bonus this morning, but it doesn't take an academic scholar to recognize that less 'profit-sharing' in our pockets means more in investors' and owners' bank accounts. That's the way of the country right now and I just needed to vent.

I'm sure I'll get past this, like we all knuckle under to a whole host of slams on our incomes as we remain haplessly thankful for having a job, at all. Still, there's something burning deep inside that is fed up with always being forced to settle for less while investors and owners satisfy their greed at the expense of us workers out here, as if our own 'bottom-lines' are irrelevant. After all, it these same people out here at the grass root level who "do most of the working and paying and living and dying in these towns," to quote George Bailey's rebuke to Mr. Potter in 'Wonderful Life.'

"...here, you're all businessmen here. Don't it make them better citizens? Doesn't it make them better customers?"

21 replies = new reply since forum marked as read
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Record profits for my company, but they cut our 'profit-sharing bonus' in half (Original Post) bigtree Mar 2015 OP
organize, unionize, get a collective bargaining agreement. nt antigop Mar 2015 #1
small comfort in that advice bigtree Mar 2015 #2
the only way things are going to change...sad to say. nt antigop Mar 2015 #3
sure bigtree Mar 2015 #4
without a contract, employers can pay you whatever they want. And if you don't like it, you can antigop Mar 2015 #5
This message was self-deleted by its author bigtree Mar 2015 #6
actually, I have been in a similar situation for many, many years. I'm just sharing what I learned. antigop Mar 2015 #8
other than a union, I can only think of two other choices you have. antigop Mar 2015 #7
well, that's a little better bigtree Mar 2015 #10
oh, vent away. I've been there for many, many years. Even tried to organize. antigop Mar 2015 #12
not the same. What they did was perfectly legal. Perhaps unfair and unjust, but legal. antigop Mar 2015 #11
This is the problem with unregulated capitalism in a nutshell stevenleser Mar 2015 #9
it's something I've noticed happening since the last economic crash bigtree Mar 2015 #13
it's why we need to move from corporations to worker-owned co-ops. Take a look at antigop Mar 2015 #14
This company needs a nice article, maybe even a series of articles, written about them SheilaT Mar 2015 #15
Public shame. My post #7. Companies HATE bad pr. nt antigop Mar 2015 #16
Nothing like an unofficial pay cut to ratify one's belief in capitalism as the be-all KingCharlemagne Mar 2015 #17
yeah, that's a quandary bigtree Mar 2015 #19
Totally understand (and did not intend to criticize you). This is a good place KingCharlemagne Mar 2015 #21
Start circulating your resume. MineralMan Mar 2015 #18
that's certainly an option bigtree Mar 2015 #20

bigtree

(86,005 posts)
4. sure
Sat Mar 28, 2015, 03:07 PM
Mar 2015

...but it's like reporting getting robbed and being told to elect a better police force.

Not your fault, I'm sure you mean well.

antigop

(12,778 posts)
5. without a contract, employers can pay you whatever they want. And if you don't like it, you can
Sat Mar 28, 2015, 03:08 PM
Mar 2015

leave.

I'm sorry, but that's the way it is.

This is not news.

eta: as long as they aren't breaking any law

Where is the law saying they have to share profits with you?

Response to antigop (Reply #5)

antigop

(12,778 posts)
8. actually, I have been in a similar situation for many, many years. I'm just sharing what I learned.
Sat Mar 28, 2015, 03:13 PM
Mar 2015

antigop

(12,778 posts)
7. other than a union, I can only think of two other choices you have.
Sat Mar 28, 2015, 03:13 PM
Mar 2015

Lobby to get a law passed. (I'm sure that will happen.)

Public shame. Contact a newspaper. Write a letter to the editor. You will have to assess whether that is a good idea for your continued employment or not.

antigop

(12,778 posts)
12. oh, vent away. I've been there for many, many years. Even tried to organize.
Sat Mar 28, 2015, 03:19 PM
Mar 2015

Put my neck on the line writing LTTEs.

Fact is...employees have very few tools.

antigop

(12,778 posts)
11. not the same. What they did was perfectly legal. Perhaps unfair and unjust, but legal.
Sat Mar 28, 2015, 03:18 PM
Mar 2015

You don't have a contract, so how did they do anything illegal?

 

stevenleser

(32,886 posts)
9. This is the problem with unregulated capitalism in a nutshell
Sat Mar 28, 2015, 03:16 PM
Mar 2015

Eventually it all comes down to those who own and run the company deciding between themselves and the rest of the company, who gets the proceeds, and it's not hard to understand that it's always easy for someone splitting money to rationalize why they should have more and others less.

Have that happen for a few generations, and that's how you get progressively worse income inequality.

This is why regulation will eventually have to encompass how much profit has to be shared with workers.

bigtree

(86,005 posts)
13. it's something I've noticed happening since the last economic crash
Sat Mar 28, 2015, 03:21 PM
Mar 2015

...companies taking advantage of the down economy to squeeze workers for more 'production' for less wage and benefit - all the while, reaping record profits for the top of the pyramid.

I have seen efforts in individual states to limit owner profits made at the expense of workers.

antigop

(12,778 posts)
14. it's why we need to move from corporations to worker-owned co-ops. Take a look at
Sat Mar 28, 2015, 03:24 PM
Mar 2015

Richard Wolff's website.

 

SheilaT

(23,156 posts)
15. This company needs a nice article, maybe even a series of articles, written about them
Sat Mar 28, 2015, 03:31 PM
Mar 2015

in the local paper. Do try very hard to interest them in doing that.

And as easy as it is for someone like me to say, Oh just go organize a union, the reality is that it's very hard to do so. Aside from the many illegal things companies do to stop that, too many employees are either afraid or honestly think they'll lose more by organizing.

I sometimes think we're going to need for conditions for workers to get as desperate as they were in the depths of the Great Depression for union organizing to start up again significantly. Not that I wish for such conditions, but maybe more people need to feel they have absolutely nothing to lose to be willing to take the risk.

I do hope something good can eventually come of what happened.

 

KingCharlemagne

(7,908 posts)
17. Nothing like an unofficial pay cut to ratify one's belief in capitalism as the be-all
Sat Mar 28, 2015, 03:39 PM
Mar 2015

and end-all of human economic activity, eh? Please know that you and your co-workers have my sympathies and my solidarity. Without your naming of the company, however, there's no way I as a consumer can boycott or as investor can dump any shares of stock I might inadvertently hold in my now-microscopic IRA.

bigtree

(86,005 posts)
19. yeah, that's a quandary
Sat Mar 28, 2015, 04:09 PM
Mar 2015

... trying not to let emotions take me to a place where I jeopardize my employment. Appreciate the solidarity, tho. Mostly just venting right now.

 

KingCharlemagne

(7,908 posts)
21. Totally understand (and did not intend to criticize you). This is a good place
Sat Mar 28, 2015, 05:20 PM
Mar 2015

to vent and it's a rotten trick your employer\management pulled.

MineralMan

(146,333 posts)
18. Start circulating your resume.
Sat Mar 28, 2015, 03:44 PM
Mar 2015

Unless the company has to worry about its employees leaving, they have no reason to do the right thing.

bigtree

(86,005 posts)
20. that's certainly an option
Sat Mar 28, 2015, 04:13 PM
Mar 2015

...I really need to talk with my co-workers and lower-level managers when I get back (day off). That's looking to be less a bargaining chip and more of a definitive option as I simmer down.

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