Honda pays too many bonuses to employees, sends memo requesting refund. Read here

Japanese car maker Honda ran into trouble after it overpaid its employees their bonuses. The company’s Marysville, Ohio division paid their employees the bonus this month. Some of them were overpaid as bonuses from the company.

In realizing the debacle, Honda asked the employees to repay the overpaid amount. Honda has also made it clear that if the employees do not do this, the excess salary will be deducted from their salary.

As much as a bonus brings joy to workers, it has almost reached a vital point with the rising inflation the global economy is experiencing after two years of complete shutdown due to a global coronavirus pandemic.

According to a report in NBC4, Honda sent a memo to employees at the Marysville, Ohio plant, informing them that the company had overpaid the bonus amount and asked them to return it.

When the media outlet contacted Honda about the debacle, the automaker confirmed that it had asked employees to refund some of their bonuses, claiming it was legally justified. However, the automaker declined to disclose how much the bonuses were and how much it was asking from employees.

“Earlier this month, Honda made bonus payments to its employees, some of whom overpaid. Compensation issues are a sensitive issue and we are working quickly on this to minimize the potential impact on our employees. we have no further information to provide regarding this matter,” the company said in a statement to the outlet.

To help Fairweather understand the amount overpaid, NBC4 quoted an employee’s wife saying that the amount to be refunded is equivalent to a car payment. “That’s, you know, a car payment. That’s half our mortgage… That’s two, three weeks’ worth of groceries. That’s a lot of money for us.’ she told NBC4.

She further stated that Honda had asked for a refund of nearly 10% of the bonus given to these employees.

Honda Motors’ turnover fell by more than 4% last year and profits by almost a quarter.

Furthermore, the car company may soon re-enter the SUV segment in India. According to a report from PTI, the automaker in India expects to get back on the growth path as it gears up to re-enter the high-selling SUV segment next year. The agency cites Honda Cars India President and CEO Takuya Tsumura in its report.

Check out all company news and updates on Live Mint. Download the Mint News app for daily market updates and live business news. More or less

Leave a Comment