 |
|
|
|
|
|
A
couple of years ago the company I work for went to a new system called
"Economic Value Added." Up until this time we received stellar bonuses
every quarter. But, when executives decided to buy this new idea of calculating
our profits using EVA, we have now gone over a year without bonuses and the
future is not looking very bright unfortunately.
Most of my coworkers and I have fallen backwards in income by a substantial amount; meanwhile, the company continues to see record sales and profits quarter after quarter. We are growing at a rate above the rest of our industry, but come bonus time we continue to get the same old song and dance.
My question is where is all of the money going? In this time of our booming economy it just doesn't seem right. We ask the same question to our managers, and they don't seem to know either. Nobody seems to have any answers. It will be interesting to see the new 2000 proxy statement in August. It is sad to say, but I am willing to bet that the executives and board members don't take a cut in pay. Let the little guys suffer, right? I guess we will just have to work a little harder while they just dangle that carrot in front of our face.
Signed,
Frustrated Blue Collar
Dear FBC:
Whoever calculated Economic Value Added apparently has produced a formula that shuts out you and your co-workers. How it was devised should have been and should be a matter of joint management/labor determination. Obviously, you do not benefit from open-book management at your workplace. And if you are not a member of a strong union, management most probably will keep you in the dark, or at least make financial information so complex or obscure that all you can do is lament your lost bonuses and wonder why this is the case in good times.
You are right in expecting that the executives who schemed up EVA will benefit--if not by big raises, by stock options. That's been the unfair picture of the past couple of decades. Those at the top have sin-sized raises while those at lower levels labor with declining wages.
What can you do? Complain. Complain. Complain. Use your voice to rally others who will informally and formally ask: Where's the money going? How is it figured? Why aren't we who are improving productivity sharing in the profits? Squeaky wheels annoy. Squeaky wheels must be greased. If you don't have a union, even a concerted work group seeking an explanation of your workplace's finances should get a hearing. Put your faith and effort into making your voices heard. Remember, your voice can do more than mumble "yes sir" and "no sir." Once you get attention, you who are seeking answers should persist, persist, persist--but should do so in good humor and with good will.
When you do get a hearing, do not forget to argue that opening the books and encouraging all levels of employees to have a look and a say can generate organization-wide loyalty and team spirit. Information when it is secret breeds distrust and alienation. Information when it is made available empowers.
WEGO can not happen when information that affects one's paycheck is secret.
Bill Gorden