Aren’t the $1,000 pay raises wonderful! … Well, not when you look carefully at what’s going on. When have employers ever made bonus payments in exact increments to everyone in their company, from the least skilled to the most skilled, or the lowest performers to the best performers? And how is that Wal-Mart’s one million employees (low skilled) get the exact pay raise of 145,000 Bank of America employees—people who have more skill and education?
The answer seems to be politics—for sure, it’s not about labor markets or company compensation plans because at no point do firms get together and discuss how they will pay their workforces.
That takes us to Disney. They’ve paid the $1,000 bonus to nonunion employees.
But they are not paying this to union-represented workers on Disney properties. Those 38,000 employees were in wage negotiations before the tax bill was passed and companies began to hand out these politically-motivated bonuses. What the company apparently wants is some give-backs for the bonus—and likely, to send a signal to the 38,000 employees that the union is their real problem. Good luck with that Mickey Mouse idea—even Goofy would see through that sham approach to pay raises.