Hands Off my Bonus!
In Corus the bonus system provides a big part of earnings, though arrangements for calculating bonuses differs greatly from plant to plant. The company has made it clear that it wants to change entirely the basis for calculating bonuses by moving to a system based on RONOA, the short way of saying return on net operating assets.
Either long or short it presents yet another threat to the terms and conditions of employees. It is an accountant’s measure but its use in practice gives rise to a multitude of problems in working out many complex and fast changing issues. It provides an unreliable and unpredictable method of measuring financial results in an industry which has a history of swinging between boom and bust. It is not a measure of productivity or the effectiveness of employees’ work.
Community leads for the unions in the discussions about the company’s approach. The unions believe that it amounts to a further attempt to attack future earnings. Management’s proposals
so far have not offered any advantages to employees. All Community members should be aware of this threat to their pay. They will want to join in the union’s campaign to oppose it. Members can check the Community website for breaking news or be in touch with their branch officials for further details.