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Experts: Don't cut bonuses

Deputy General Secretary of the Barbados Workers' Union, Robert 'Bobby' Morris. (FP)

 

Published on: 11/19/2009.


ONCE YOU CAN afford it, pay it!

This is the view of a local economist and specialists in the area of labour relations concerning the allocation of Christmas bonuses this year, in light of the global slowdown which resulted in sweeping job losses across the island.

They believe the much-anticipated year-end bonuses should not be used as another cost-cutting measure, as it could result in further problems in the economy.

"Most of the workers' money is spent, [so] what they earn goes back in to keep the shops and supermarkets going," said deputy seneral secretary and director of industrial relations at the Barbados Workers' Union (BWU), Robert "Bobby" Morris.

"If workers don't have anything, it is going to impact the economy and lead to stagnation."

He explained that there were two types of bonuses - one based on profit-sharing, the other determined by performance.

In regards to the former, the senior trade unionist was of the opinion that if the company was profitable, it should show its appreciation to its workers even if the amount was reduced.

"It sends the correct signal to the workers. But if you decide that you are still making a profit and are not sharing, that is not a good thing to do."

President of the Barbados Economics Society (BES) Anthony Johnson added that because of the recent job cuts, there was justification for bonuses now more than ever, even if they were scaled down.

Labour relations specialist Harry Husbands concurred with this assessment, and added: "Employers should determine if they are in a position to do so and should relate it to the company's performance."

However, he believed that contractual bonus arrangements had to be honoured by the employer.

"Some bonuses are contractual and tied to performance indicators. If they are contractual and the employee meets all the requirements, they have to be paid," Husbands argued.

This was also Morris' position.

"Performance-based bonuses are only triggered by certain levels of performance and it is something that is worked for. There might be a decline, but that does not mean there is no bonus at all unless [the worker] just has not met the criteria that were established," he asserted.

Morris was of the opinion that companies should ensure those who were laid off received their bonuses as well.

"If that person was working some part of the year that the bonus was earned, it seems equitable to give a pro-rated amount of the bonus." (LW)

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9 comment found!

Bonus or Ransom : 11/26/2009
One year a certain company paid out some sort of bonus, and it was deemed not enough by the union. When the company attempted to make up the shortfall, the union rejected it.The employees were advised to keep the first payment. The company was forced to pay the complete revised rate from scratch.Now that what I call a Bonus/Ransom

bajan- in-bim

you go uncle : 11/26/2009
YOU GO UNCLE GOOD JOD WELL DONE

NIECE USA

Bonuses Based on Performance : 11/26/2009
There is a reason for the payments being called bonuses. These payments should be based on performance. If a business has not performed well, or is experiencing problems access capital, it would be unreasonable to expect bonuses as was the case in good times. I would also like to hear to union officials emphasize work ethic and employee accountability.

Bajan In New York

Fat cats : 11/22/2009
Sure Bobby Morris, indeed reward the already fat cats with bonus money. In these times, fat cats really need the extra bucks to "survive". Businesses should not give bonuses but rather, hold on to the money that can be leveraged to keep people in a job. As far the fat cats, why don't you folks recommend all bonuses go toward your former work colleagues who are now out of a job? I betcha none of wunna would think of such a stellar thing!!

Fat cats: Go slim

Spend : 11/19/2009
Economics is not an overly complex social science. Spending makes the economy turnover and will result in profits (a part of which will go toward providing future bonuses). Profitable firms will also be in a position to expand, which will in turn provide jobs in the economy. So don't cut the bonuses, and spend a large portion of what the bonus you receive. Bad times are not times to put off consumption until future periods through savings. However, the catch here is to curb affluent ways in good times so that you are in a better position to weather bad times similar to those being experienced now.

Young Economist

Dont cut bonus : 11/19/2009
Mr Morris makes much sence and his advice should be followed.

bajan brit

Savings. : 11/19/2009
By the time you pigoff on the food and extend belly til you can't walk, all you can do is sleep. By the time you wake it is Christmas evening and the day gone. Once Christmas day gone, the season over. Once christman gone, the merchants rich rich rich and the cholesterol will make you spend the money for the New years night outfit at the Doctor. Please don't go the casualty. After you buy the medication, no money left to pay the cooley man and the light bill, so out gone the christmas lights -no electricity. And guess what else? Glassy eyes set in. All that salt from the pork and ham and no money-what a teary world and no money for the optician. If you are lucky to get bonus, keep it tight in the pocket or in the old milo tot under the bed. Don't put it in the bra any longer cause the young robbers will smell it and their hands will get busy. ALZIMA'S.


: 11/19/2009
Hopefully Barbadians would be conservative this year and ignore the rich businessmen and profiteers. Nothing wrong with going to church xmas morning in an old goodlooking dress. Leave the xmas loans alone so that early next year the bailiffs would have to sweat like all the rest of us to servive. A poor,quiet, peaceful christmas with very few trimmings for once can still a good christmas make.
Retired.


: 11/19/2009
Wait , where you come from, you did hiding? You giving up you bonus too!!!hmmmm



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