published Friday, November 18th, 2011

TVA to pay typical employee $8,300 bonus next week

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    The Tennessee Valley Authority offices are located on Market Street in Chattanooga.
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Do you agree with the bonus TVA is giving its employees?

The Tennessee Valley Authority will give its average worker a year-end incentive check worth nearly $8,300 next week.

TVA announced today that it will pay “Winning Performance” bonuses next Wednesday totaling $107 million to TVA’s 12,893 full-time workers. Although the incentive pay will vary by TVA job and division, the average TVA worker will end up with $1,536 more this year than what the year-end bonuses were a year ago.

Janet Herrin, executive vice president of people and performance for TVA, said the incentives are part of TVA’s pay-for-performance system and reflect the fact that TVA as a whole exceeded its targeted goals for fiscal 2011.

“We are striving to offer competitive pay to attract and retain the best people we can at TVA,” Herrin said. “When we go out in the market and look at what comparable utilities of similar size as TVA, they all have a compensation system that is similar with both base pay and pay that is at risk depending upon performance.”

Herrin said TVA agreed to participate in the federal wage freeze ordered by President Obama for other federal agencies last year. But she said the incentives are beyond the base pay covered by that freeze.

Also exempt from the federal pay freeze are the 70 percent of TVA employees who are represented by labor unions. Unionized engineers and secretaries were granted wage increases of about 2.8 percent with the start of the fiscal year on Oct. 1. Unionized craft workers are negotiating a possible wage increase for the calendar year of 2012, Herrin said.

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about Dave Flessner...

Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...

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McRand said...

"TVA to pay typical employee $8,300 bonus next week"

How many Paneras bread and Starbucks receipts do they have to turn in to get it?

November 18, 2011 at 1:05 p.m.

I hope it is because they all worked hard and earned it.

November 18, 2011 at 1:21 p.m.
eng9058 said...

What Mr. Flessner is not telling you is that Winning Performance is a percentage of salary that is determined based on performance metrics - how TVA performs in various categories - and that varies across the organization. To say that the typical employee is receiving an $8300 bonus is inaccurate. Simply dividing the total Winning Performance money by the number of TVA employees is oversimplifying the issue. The "typical" employee is receiving less than 5% of their base salary.

November 18, 2011 at 2:06 p.m.
VoiceOfTruth said...

Mr. Flessner and others have been misrepresenting the winning performance payout for years. The 'average/typical' employee is not getting anywhere near $8,300. In order to receive the $8,300, the average/typical employee would have a salary way over $100,000. A custodian's portion - if he received 5% - would only be a little over $1,000. My business unit isn't entitled to 5%, so my bonus is around $2,250. Also, how odd that Kilgore gave some rather low grades to various TVA departments, yet gets over $2 million in bonus money. Shouldn't he be held accountable for the low grades - specifically Nuclear - who he gave a 'D' grade.

November 18, 2011 at 2:38 p.m.

Shouldn't you two TVA employees, eng9058 and VoiceOfTruth, get back to work so you can earn the "typical" $8,300 bonus next year?

November 18, 2011 at 2:51 p.m.
JaneCitizen said...

Someone is eating sour grapes.

November 18, 2011 at 4:39 p.m.
Reardon said...

I know a guy at TVA who makes low six-figures. Here's his work schedule:

-4-day weekends every 1st and 3rd week. 3-day weekends every 2nd and 4th. -A mixture of night and day shifts -Every 5th or 6th week off completely. -4 weeks off at the end of the year. -$35 a month for family health insurance benefits (could be weekly)

The guy probably works around 6-7 out of the 12 months per year.

What a nice gig.

November 18, 2011 at 8:40 p.m.
docspop said...

What about the TVA craft people who go 2 weeks without a pay check so that these people can get this money.When I worked at TVA as a craft worker we had to take 2 weeks off (contractor free) so that money went for this bonus money.TVA is nothing but a fat pig being fed by the tax payers.Docspop

November 18, 2011 at 10 p.m.
teach_them_all said...

So that's where the rate increase is going, it all makes perfect sense now.

November 18, 2011 at 10:03 p.m.
joshm said...

Well, there are two issues at hand here.

1) Mr. Flessner is using outright mathematical lies to try to prove a point about TVA bonuses. There is a distinct difference in the "average worker" and a mathematical "average." Mr. Flessner clearly mistakes one for the other when he uses a mathematical average to pin a bonus on the average worker. I would be considered an "average worker" and will receive about a quarter of $8,300 after you take out taxes (which Mr. Flessner omits in his $8,300 figure.) What he did was take $107,000,000 (total bonus money) and divide by 12,893 (total workers) which yields $8299.07. That is a mathematical average. What he did in this article is the same thing as if 5 people ran for president and there were 1 million votes, then the "average person" got 200,000 votes right? Wrong. Not one person reading this would belief that is how elections work, yet why are you willing to believe that is how TVA bonuses work?

2) The bonuses are considered part of our salary. It is the same thing as a waitress or a valet parker, they consider bonuses part of their pay. No one writes an article with taglines of "THE AVERAGE WORKER AT BROAD STREET GRILLE MAKES $100 A DAY IN TIPS!!!" You would laugh out loud and think to yourself, "Who cares, that is part of their pay!" So, why is it different with TVA?

"But joshm, the reason I am mad is because this is my taxpayers money going into their pockets!!!"

WRONG! TVA does not accept taxpayer money. All of our money is generated from our revenues. On top of that, we pay more than $505 million a year in local taxes to help out each state we are in.

Don't just drink the media's kool-aid...think for yourself! This article uses outright mathematical lies in order to hack a few people off using sensational journalism.

Also, if you really had a problem with TVA...you could turn off all your lights, not run your heat, or send your kids to school, or use your refrigerator, or pump gas in your car, or use your cell phone, or access the internet because all these things use electricty that TVA provides...

November 22, 2011 at 9:30 a.m.
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