When CEOs Pocket Bonuses and Workers are Told to “Get out of pity city”: A Look at employee rights and safeguarding one's financial rights in the Workplace.

The recent uproar over MillerKnoll's President and CEO, Andi Owen, cancelling employee bonuses while pocketing a shocking $6.4 million bonus herself, has catapulted the pressing issue of income disparity and employee rights into the spotlight. Owen's dismissive response to employee concerns during a town hall meeting - urging them to prioritize meeting sales targets before the financial year concludes - has intensified this discussion. Regrettably, this scenario mirrors recent events at Royal Mail and British Gas, where CEOs were given substantial bonuses while employees were going on strikes and wage disputes. This article delves into the context of these incidents, explores the laws governing employee rights, and offers insights on safeguarding one's financial rights in the workplace.

MillerKnoll: A Case Study in Income Disparity

Andi Owen's decision to cancel employee bonuses while accepting a $6.4 million bonus for herself has left many employees feeling cheated and undervalued. During a town hall meeting, Owen urged employees to focus on generating $26 million in sales before the financial year ends in May 2023. The message was clear: rather than addressing inequality and concerns, employees should work harder to meet ambitious sales targets.

This approach highlights the staggering gap between CEOs and their workers and illustrates the lack of empathy and understanding of employees' financial needs. The elimination of bonuses has a severe trickle-down effect on workers who rely on this additional income to support themselves and their families.

Royal Mail and British Gas: A Pattern of Disparity

Unfortunately, the situation at MillerKnoll is not isolated. Other companies have faced similar controversies, with CEOs reaping financial rewards while workers struggle with wage disputes and job insecurity.

At Royal Mail, CEO Rico Back received a £5.8 million "golden hello" bonus upon his appointment in 2018, despite ongoing disputes between the company and its workers regarding pay, pensions, and working conditions. This decision led to widespread criticism and eventually contributed to Back's resignation in 2020.

Similarly, at British Gas, CEO Chris O'Shea took home a £3.7 million bonus in 2022, while employees were on strike over proposed changes to their contracts since 2021. The new "fire and rehire" policy forced workers to accept lower pay and longer hours or risk losing their jobs altogether.

 

Employee Rights and Legal Protections

In light of instances like those at MillerKnoll, Royal Mail, and British Gas, workers need to understand their rights and the laws in place to protect them. In the UK, employment laws offer a framework for fair treatment and compensation in the workplace. These laws cover aspects such as minimum wage, overtime pay, equal pay for equal work, and protection from discrimination.

For example, the National Minimum Wage Act sets the minimum wage standards, while the Equality Act ensures equal pay for men and women performing the same job and protects workers from discrimination based on characteristics such as age, gender, and race.

Unfortunately, these legal protections come with limitations. Although there may not be specific laws governing the distribution of bonuses between CEOs and employees, there are legal avenues employees can explore to protect their rights and interests.

1. Employment contracts: Employees should review their employment contracts to determine if there are any provisions related to bonuses, performance-based incentives, or profit-sharing in the lack thereof, they could request this clause to be added to the contract before signing. If the contract stipulates that employees are entitled to bonuses under certain conditions, they can use this as a basis for pursuing legal action if the employer breaches the clause. For example, a breach of contract claim can be brought before the UK Employment Tribunal.

2. Company policies: Employees should familiarize themselves with company policies on bonus distribution. If the company has a policy in place that outlines the process for awarding bonuses and this policy is not being followed, employees can raise concerns through appropriate channels or seek legal advice.

3. Discrimination laws: If an employee believes that they have been denied a bonus based on discriminatory grounds (such as age, gender, race, or disability), they can seek legal recourse under the Equality Act 2010. This act protects employees from discrimination in the workplace and could potentially be used to challenge unfair bonus distribution practices.

4. Collective bargaining: Employees who are members of a union may have the option to address the issue of unfair bonus distribution through collective bargaining. Unions can negotiate on behalf of their members for fair wages, bonuses, and benefits. Trade unions such as Unite or GMB may support their members in disputes related to bonus payments.

5. Legal advice: If employees believe their rights have been violated, they should seek legal advice from an employment lawyer, ACAS (Advisory, Conciliation and Arbitration Service), or the Citizens Advice Bureau. Legal professionals can help determine if there are any grounds for a claim and provide guidance on the best course of action.

While there are no specific laws and statutes that directly address the disparity between CEO and employee bonuses, employees can utilize a combination of contractual rights, company policies, and discrimination laws to challenge unjust practices and safeguard their financial interests. Collective bargaining can also play a pivotal role in holding companies accountable for their actions.In a just workplace, every employee deserves a fair share of the pie - not just crumbs while the CEO takes the cake!

by

Sujatha Baskaran