Hi Everyone...
My posting is going to be very unpopular but feel that it is appropriate to the topic at hand, so here goes...
In management positions, a bonus program is part of one's compensation package. In traditional collective barganing agreements, bonuses are not NEGOTIATIED as part of the compensation package. Bonuses are paid to managers for meeting certain departmental performance objectives. It's just how the compensation is structured in upper level managerial positions. If one's department meets certain performance objectives, ragardless of whether the company is making a profit, a bonus is paid. Unfortunately, most people who belong to a labor union don't understand this concept.
I do find it rather misguided when the AFA contests retention bonuses that, in this case, USAirways needs to pay in order to RETAIN highly-skilled talent from fleeing to other airlines or other industries where they could COMMAND more money based on the skill-set that these employees bring to their position. Retention bonuses are necessary. It behooves everybody at US to to have the BEST people working in positions that are critical to the success of the corporation.
It's unfortunate that the word "BONUS" has such a bad connotation to organized labor (of which I am a part of). In traditional collective bargaining agreements, compensation is tied to SENIORITY rather than PERFORMANCE. Management compensation is just a different model.
For the most part, union employees continue to get longevity raises each time they hit another year in seniority...in spite of the company's financial performance. So what's the difference? Union members continue to get a raise based on SENIORITY and management employees continue to get a raise based on PERFORMANCE, regardless of whether or not the company is profitable.
I took a Managerial Accounting class which really educated me on this subject. Rentention bonuses can be a GOOD THING, if it keeps the right people who are the best in their game (finance, revenue management, accounting, etc). from flocking elsewhere.
Okay Ms. Pitbull...flame away!