Honda overpaid employee bonuses and now wants it all back

Imagine the morale of employees who were handed a little extra money as a bonus, only for the company to ask for it back a few weeks later. Well, one does not need to imagine as such an incident has transpired in Ohio, USA, involving a multinational auto giant.

Reportedly, Japanese automaker Honda, according to a statement overpaid the bonus to its workers at the Marysville, Ohio plant. 3,900 employees currently work at the plant and it is unclear how many of them received the extra bonus.

“Earlier this month Honda provided bonus payments to its associates, some of whom received overpayments,” said Chris Abbruzzese, a Honda spokesperson.

Honda added it was a sensitive matter and that they were moving quickly to sort the issue, “Issues related to compensation are a sensitive matter…we are working quickly on this item to minimize any potential impact to our associates.”

The company, in a memo, addressed to the employees is now asking them to return the bonus, latest by September 22, or have it deducted from future paychecks or future bonuses. 

According to media reports, some employees have been asked to return as much as eight per cent of their bonus, despite having spent the money on mortgages and groceries already.

It is pertinent to note that the particular Ohio factory produces cars such as Accord, CR-V, TLX, NSX, and Integra. If the employees decide to not pay back the money, experts believe that Honda might sue them as there has been a precedent in such cases. 

Honda overpaying bonus comes in the backdrop of the company facing supply chain, chip shortage, and logistical issues. Last month, Honda announced that it would slash production by up to 40 per cent in Japan in September. 

WATCH | Japan: Honda to slash output by up to 40%

Moreover, the Japanese car major is mulling discontinuing its diesel cars in India as it cannot make its model work as the Indian government introduces stricter emission norms. 

“We are now not thinking too much about diesel. It’s very hard to clear RDE with the diesel. Even in Europe, most of the brands could not continue with diesel.” the company said in a statement. 

Read more: Honda might discontinue its diesel cars in India as new emission norms come in place

(With inputs from agencies)

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