The New York Times
Published: June 26, 1987
Bonuses Replace Wage Rises and Workers Are The Losers
Seeking to hold down labor costs, thousands of companies are changing the way they increase workers’ pay. Instead of the traditional annual increase, millions of workers in industries as diverse as supermarkets and aerospace are receiving cash bonuses – and this new form makes a big difference.
While many corporate executives are promoting the bonus programs as a tool to share the wealth and increase productivity, the plans clearly mean less money for most workers.
The bonuses take many forms and names. At Abbott Laboratories and Hewlett-Packard, they are called profit sharing. At Mack Trucks and the Dana Corporation they are gain-sharing. Boeing calls them lump-sum payments. And the Union National Bank in Little Rock, Ark., has a pay-for-performance plan. Wages and Benefits Slowed.