Originally Posted by
OpenClimb
Sorry for butting in here, but I have an honest question. What is the difference between a retro payment and a ratification bonus? I’m not being sarcastic. I really don’t know the difference.
Are there differing tax consequences—for the Company or the recipient? Does one pay out even if someone retires prior to the date of signing?
I’ve seen several posts where folks have some strong feelings ref. calling it one thing or another and I still haven’t seen an explanation of any difference other than semantics.
A retro payment is a retroactive raise. Everyone gets paid based on the hours worked after the ammendable date. A signing bonus is used by dishonest companies to take full advantage of the RLA to screw their employees out of hundreds of thousands of dollars.