General Discussion
In reply to the discussion: Which is because of greedy bastards like you, we'll always need unions in this country... [View all]badtoworse
(5,957 posts)Many companies do pay bonuses, but they are under no obligation, moral, ethical or otherwise, to do so. The reason companies pay bonus compensation is to align the employees' interests with those of management. It's frequently tied to the achievement of individual and company goals. When the goals are met, it usually means it was a good year and everyone is happy. Management, however, always retains the right to terminate bonus plans.
ETA: It's interesting to note that OP's comment about unions doesn't really apply with respect to bonuses. In my experience, it's unusual for union workers to get a bonus, and if they do, it's usually only a token. Union workers chime in, but I believe the reason is that they don't generally bargain for a bonus in the contract.