Publix Pay Fallout

http://www.sptimes.com/2007/04/09/Business/Publix_pay_fallout__R.shtml

Publix pay fallout: Readers give their 2 cents over losing a quarter

Readers, bloggers, customers and employees weigh in on a Publix plan that cuts some pay.

By Mark Albright, Times Staff Writer
Published April 9, 2007
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[Times photo: Keri Wiginton]
Ray O'Connor, 75, stands in front of the Publix where he has been a bagger for 10 years. His pay was recently docked 25 cents an hour.
Previous coverage

* Publix's new pay system: High performance, smaller paycheck (March 25)

Despite superior work ratings Louann McCurdy was earning the maximum $10.25 an hour cashier salary, so she wasn't always eligible for annual raises. But when her manager tried to cut her pay by a quarter an hour last week, that was too much.

She quit.

"After working at Publix 12 years I had earned every nickel of that $10.25 an hour so I'm not about to let them arbitrarily take it away," said the 48-year-old Tarpon Springs woman. "This isn't about the quarter. I have my pride. Right now I have no job, no prospects of getting one and yet I feel very relieved."

Publix Super Markets Inc. has been vague about who's shouldering most of the pay cuts from an unusual new pay plan imposed on 115,000 workers in its stores. But more than two dozen workers from Tampa Bay stores who accepted cuts to keep their jobs say most of those choices are being put to veteran Publix workers in their 50s, 60s and 70s - including an 80-year-old Palm Harbor bagger.

"They tagged five people here with pay cuts, including me," said Ed Lapinski, 55, a cashier in a Homosassa Publix. "The other four were seniors in their 70s."

In the two weeks since 75-year-old Spring Hill Publix bagger Ray O'Connor spoke out against the chain's new pay plan in a St. Petersburg Times article, there's been lots of fallout.

Letter writers peppered local media and filled a several pages of give-and-take among employees and customers on online comment boards where the story was published. Some customers said they will boycott Publix. Uncertainty spread among workers awaiting review or who had kept pay cuts to themselves.

"Even the private security guard at the front door asked me about my pay cut," said Wendy Giddings, 55, who works at a St. Petersburg store.

The discussion comes at a time when big retailers are beginning to grapple with ways to keep costs under control with an aging work force. Wal-Mart Stores Inc. was criticized when a memo surfaced last year mapping tighter work rules to prod more older workers to quit before they aged through their prime years for health claims. Circuit City Stores Inc. last month laid off 3,400 of its highest-paid sales help to replace them with lower-paid workers.

Publix, which says more than 20 percent of its store workers are 50 or older, says the pay plan is not about age or cost control. The company increased its payroll and adopted the pay system to take to the next level its renowned customer service and national recognition as an employer of choice among seniors.

"Only a small percentage of our 115,000 hourly store employees have had their pay reduced," said spokeswoman Shannon Patten. "This not about age. We're doing this for the right reasons: to reward those who perform well. A huge majority of our employees prefer it that way."

Publix's plan rewards top performers but, for the first time, can impose 25-cent-an-hour pay cuts to prod employees to do better if their evaluation scores slip. Workers get six months to improve before a pay cut.

Seventy-seven percent of Publix store employees reviewed in February got a raise while 4 percent saw a pay cut. Even top-tier scorers who got double raises of 50 cents an hour can lose them if they don't maintain their ratings.

Online reader comments characterized Publix "plantation-style management" taking small change from people living paycheck to paycheck after the company's net income soared to a record $1.1-billion in 2006.

From the other side, self-described hard workers question why veterans should get away with easing off the throttle, see no problem penalizing a small group of "bottom feeders" and say baggers don't add much value to Publix.

"It was jarring to people here because people thought Publix, which has been seen as a desirable employer, was beyond all this," said Peter Helwig, a Lakeland lawyer in Publix's corporate home town.

Blogs of retail experts read by supermarket executives debated the pros and cons of Publix' use of disincentives. Most liked the idea if store managers can rate employees on a consistent basis using objective, benchmarked criteria.

"The fact is Publix doesn't want someone who quits over a quarter an hour anyway," said David J. Livingston, president of DJL Research in Pauwaukee, Wis. "They want someone who tries harder all the time, has a great attitude and, if they lose a quarter an hour, is committed to get it back. That's what made this company a dominant force against strong competition like Wal-Mart."

Some whose pay was cut question the consistency of their ratings. A few lost attendance points for taking sick leave. One lost two points for each unexcused absence while another was docked one point for the same reason in the same store.

"It's still a good company," said Gene Sullivan, a one-time Publix store manager. "They just put too many young managers who don't know how to treat people in charge of multimillion dollar businesses."

As for O'Connor, the bagger who was first to sound off about the pay plan, he was counseled by his managers to refer customers who ask about his job situation to them. Last week they handed him a $5 gift certificate after a customer lauded him for "superb service."

"Maybe they're trying to butter me up" he joked. "But I'm not leaving here until my work record is cleared."

Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.

What they're saying

"What a recipe for poor employee relations! I won't feel the same way about Publix if I shop there again."

Dorothy Snidow, St. Petersburg customer

"It was jarring to people here because people thought Publix, which has been seen as a desirable employer, was beyond all this."

Peter Helwig, a lawyer in Lakeland where Publix is headquartered

"It certainly appears that the spirit and values of the late George Jenkins are no longer with Publix."

Sarah A. Benjamin, South Pasadena customer

"If they stop improving after receiving the higher or maximum pay, they should get a pay cut."

Ta-Hung (Tony) Jenq, a Publix assistant store manager in Clearwater

"This paper needs to publish the pay of the CEO and top executives and all of their perks."

Jacqueline Paulausky, Clearwater customer

What happened

Publix Super Markets, Florida's No. 1 and the nation's sixth-largest supermarket chain, adopted a pay plan that rewards high achievers but can penalize employees who may do their job well but are not considered constantly improving. Lakeland-based Publix spent years creating its "Tie Pay To Performance" plan, aimed at rewarding more productive workers. Some Publix workers have found their pay docked despite being designated "successful" performers.

The response

A March 25 St. Petersburg Times story, left, about Publix bagger Ray O'Connor's pay cut and the supermarket's performance plan has prompted a strong and mostly critical response from readers of this newspaper and those of the Lakeland Ledger, which ran the story.

What it means

The topic touched nerves in several workplace debates, including inter-generational work conflict at the corner supermarket. Pay incentives for performance are old hat. But is it right to cut pay for low-level, part-time veterans if once-acceptable work performance supposedly slips a bit? How will retailers deal with an older work force as baby boomers age through their prime health care years?

[Last modified April 6, 2007, 20:57:13]

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Comments on this article
by Jesse 04/09/07 12:25 PM
If they would train the young managers and have higher standards of acceptance into management positions, the evaluations may have more weight, and then there would be no room to complain. If you slack, you deserve a pay cut. Bottom line.
by Jason 04/09/07 12:20 PM
I work at Publix. Let me tell you how brutal of a job you have to do to lose the 25 cents. Would you rather they just fire the older worker who is doign a terrible job? Heaven forbid you get paid accordingly to the job you do.
by Jon 04/09/07 12:18 PM
I have a friend who lost wages from this. He scored near the max on his reviews for years. But the 1st review he had AFTER the new policy he lost 30 points and was reviewed by a manager who been with publix for 2 months. How is that a fair system?
by Hannah 04/09/07 12:11 PM
The new pay plan would not be bad except that the uneducated Publix Management team can be very prejudiced. It is still operating in the good old boy network that got them in trouble in the early 90ò019s.
by Nancy 04/09/07 12:06 PM
The only way this can be fair is if the WHOLE COMPANY is being subjected to this type of management and that evaluation points can't be arbitrary. Also, employees must be aware what will cause deductions, how much and why and how they can gain points
by Lindsey 04/09/07 12:00 PM
My subdivision is across the street from a Publix. I compared 20 items I normally buy from Publix to Wal-Marts prices. The savings: over $20! Since then I've only used Publix for 1 or 2 items. Now with this nice news, I won't shop there at all!
by Jennifer 04/09/07 11:59 AM
These employees have worked for Publix for 10 and 12 years. You don't last that long if you're doing a poor job. Perhaps they didn't EARN getting a RAISE, but they didn't DESERVE a pay CUT!
by Richie 04/09/07 11:57 AM
Publix prices are way too high ,you'd have to be crazy to pay that.I shop at Super Wal-Mart or Winn Dixie.I don't want to pay higher prices just so the cashier will chit chat and smile.Who cares.
by Kidd 04/09/07 11:51 AM
How many of those touting performance measured pay are not hourly workers? I bet they change their tune once their account reconcilation they worked a week on gets them $100.00 docked from their semi monthly salary.
by Tony 04/09/07 11:45 AM
Sounds like the old sweat shop tactics of the 1920's & 1930's
by billy 04/09/07 11:43 AM
THE EMPLOYERS AT PUBLIX SHOULD BE ASHAMED OF THEMSELVES, PERIOD .............
by Tracye 04/09/07 11:40 AM
I would employee many older workers, their work ethic is far more superior than young people who think everything is owed to them. As for Publix, you can have that store and their high prices. I do my shopping at Sweetbay as it is anyway.
by Ed 04/09/07 11:34 AM
Instead of cutting pay, Publix should revisit their training program. Do they grade and reward/punish managers with regards to how their associates stack up , review-wise? There's an old saying in retail that applies here.."It all starts at the top".
by Steve 04/09/07 11:30 AM
While working with retail customers is a noble job, I fail to understand how you can "coach" someone to become a better cashier. Smile, ring up things, then tender the transaction. It's insane to think you need to motivate someone by pay cuts.
by Diane 04/09/07 11:29 AM
At some time, somewhere, some how, people in management need to wear the shoes of their lowly workers. Only then will they begin to understand that wages cannot go lower when people need to support their families. Try living on $10.25 an hour.
by Heidi 04/09/07 11:25 AM
I have no desire to support a co. that treats its employees this way..and they also support fisherman..that promote the Harp Seal Hunts...Bad Publix...Bad!
by Kim 04/09/07 11:14 AM
I work for Publix, I see people who do their job and those who DEFINITELY do not. But I do not agree with the level of the new pay plan, only because it is nearly impossible to get "role model". I do my job well and I get my raises, it's not hard.
by James 04/09/07 11:11 AM
If Publix is only cutting few employees pay, and cutting it by say 25 cents, it doesn't seem that the "cost savings" is worth the fallout. How exactly can someone be a "disgruntled poor performer" and still have an excellent evaluation history?
by Mike 04/09/07 11:09 AM
Hidden in the depths of the article is the phrase that is really important: "Seventy-seven percent of Publix store employees reviewed in February got a raise while 4 percent saw a pay cut." How dare they reward good employees while penalizing bad?!
by JJ 04/09/07 11:04 AM
This will have no change on Publix. You can try a boycott, but it will not accomplish anything. They own the grocery business in Florida. What is the alternative? Wal-Mart? Is that an improvement?
by RHONDA 04/09/07 11:02 AM
I WILL NOT SHOP AT PUBLIX. YOUR PRICES ARE TO HIGH AND AFTER READING THIS ARTICLE IT MAKES ME SICK. BYE PUBLIX I HOPE OTHERS WILL DO THE SAME!!!!!
by hermann 04/09/07 11:00 AM
Publix you lost me as a customer look at your ceo and executives that,s where the problem is,I'm proud of this lady Louann McCurdy,
by Mike 04/09/07 11:00 AM
Publix should emulate whatever they do at COSTCO or Sam's club. The prices are lower and all of the employees are pleasant.
by Joy 04/09/07 10:56 AM
Hello, Paul! Sounds like Publix is the one who is biased -- against senior employees! I just recently filled out a form Publix is giving their customers. I certainly wouldn't fill it out the same way now. No more Publix for me!!!
by Susan 04/09/07 10:55 AM
I already refuse to shop at Publix because their prices on items I regularly purchase are so much higher than other local grocery stores. Even so, their parking lot is always full which tells me they are more concerned with profits than employees.
by A 04/09/07 10:53 AM
Another thing, do you guys know Publix freely gives all their employees stock in the company? And they offer a great daycare service? Since when has anyone been entitled to keep their current pay when they DON'T do their job correctly?
by Sergio 04/09/07 10:52 AM
Look I don't agree with what Publix is doing , however it's a company and if they persive you as a producer then they have the right to cut your pay. You can always work and shop somewhere else if you don't like it.
by A 04/09/07 10:51 AM
Mu husband works for Publix and what you didn't hear abotu this man is that they gave him time to change is workethic and he didn't and that is why he was dropped in pay. You should get the facts before putting your worthless 2 cents in.
by Warren 04/09/07 10:47 AM
Publix has reduced itself to another company where employee loyalty is secondary to earnings. How much can the company save? Not much compared to the bad public relations they have now placed upon the company.
by Bill 04/09/07 10:47 AM
As a past Publix employee, I know what they use to be, but with the younger managers that only look at bottom line and not at people it will fail. Krogers is doing the exact type of thing with thier older workers. Will nip-pick them till they quit.
by Ted 04/09/07 10:46 AM
If they want to cut pay of employees why don't they cut the salary of the fat cats..
by Bill 04/09/07 10:46 AM
This is a NEW style of doing business dreamed up by having too many middle management people sitting behind desks and getting paid too much looking at bottom line not what made the company what it is or should I say what it was.
by Susan 04/09/07 10:45 AM
I shop at Publix because it is a much more pleasant experience than Walmart. If Publix employees grow dissatisfied with their wages, what kind of customer service can we expect? I may switch to that big super Target they are building in my area!
by Vickie 04/09/07 10:43 AM
I have been wanting to give Albertson's a try:NOW the time is perfect.I am TIRED of paying Publix's exorbitant prices anyway.I think cutting pay for profit is unreasonable even with the best of intentions.Shame on Publix.
by Jesus 04/09/07 10:28 AM
Please for the love of god Publix is losing money over the past year look at the money, and dont blame the manager he was just told to do it by his higher ups. =/



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