An unexpected bump in your last paycheck of the year is nice, but it's not a substitute for long-term improvements in worker compensation.
When a wealthy CEO tosses $20 million in unanticipated bonuses at the company's more modestly paid employees right before Christmas, it evokes a number of emotions, not all of them heartwarming.
First, the receivers of the extra money are happy, certainly happier than they'd be if they had to pay for a family holiday season with just their regular income.
The CEO probably feels happy, too, knowing that in exhibiting generosity, workers are more predisposed to nominate the company for one of those "Best companies to work for ..." lists.
Then, the wheels start turning. Is a one-time gesture, with no promise of repetition, just a quick way to quell dissension over the fact that the average CEO in this country makes 271 times the salary of its average employee?
Are such stipends a low-cost way for the wealthy to "prove" that all workers benefit when highly profitable firms and their owners get massive corporate tax cuts?
Just about a year ago, news pages and airwaves were filled with stories of $500 or $1,000 bonuses given to workers by companies whose tax burden had been chopped. For as little as $10 a week per worker, companies helped the Trump administration gloss over that the tax cut itself is sharply tilted toward the wealthiest. And, there's still been no serious effort to ensure that smaller middle-class tax cuts -- unlike the larger corporate ones -- will be permanent.
With that in mind, how does one approach feel-good bonus stories of the current holiday season? A South Jersey version occurred Thursday at the nondescript offices of Bayada Pediatrics in Voorhees Township. Bayada Home Health Care CEO David Baiada handed out bonus checks ranging from $50 (for the newest workers) to $5,984.84 (to its longest-serving employees).
The Voorhees office is home base for some 140 pediatric nurses who work in the homes of clients, under a model that company founder Mark Baiada (David's father) pioneered in Philadelphia 45 years ago. Bayada Home Health Care now has 32,000 employees in 22 states, all of whom are apparently sharing in $20 million of the elder Baiada's own wealth.
As the checks were accepted Thursday, some employees cried. One told of a Caribbean vacation, now suddenly possible.
How genuine are the company's motives? The skeptical might want to delve further into the story. Bayada Health becomes a nonprofit organization under an unusual transition taking place Jan. 1.
"It's about providing a personal gift of gratitude from my father, Mark, and our family to recognize all the contributions as we prepare to convert to nonprofit," David Baiada said of the payments.
Under what the Baiada family calls a "lasting legacy plan," the company's conversion to nonprofit is meant partly to ensure that employees won't be forced to work for a different corporate owner down the line that places less value on employees and more value on profits.
It's still unknown to what degree working for a nonprofit will be beneficial to these health-care professionals. Credit, though, is due to any employer, including Bayada, that takes lasting steps to improve things for employees. Other companies are using employee ownership models that offer policy input and regular profit sharing. Still others are committing voluntarily to higher minimum wages, often $15 an hour, that are permanent.
Without such commitments, one-time bonuses can resemble a sugar rush. Not that employees should refuse them, but what follows a sugar rush (or a drug high) is often a crash that brings back a bleaker reality. It's only actions that are good for the long haul that can ensure a brighter future.
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