Business & Finance: Bonus for Quitting

Because the number of telephone calls in New York City fell from a daily average of 7,950,000 in February 1937 to 7,550,000 in February 1938, New York Telephone Co. last week found itself with a surplus of workers. Instead of laying off some employes, the company offered a bonus of “one week’s pay for each year’s service, in addition to vacation pay, to a limited number of the force who do not depend solely on their jobs for income and who may consider the special payment inducement to resign voluntarily at this time.”

New York Telephone tried the same scheme in March 1933, and 2,600 employes resigned, getting an average bonus of $300. By the end of last week approximately 125 more had accepted an average of $392 for quitting. According to Vice President Victor E. Cooley, 60%, of them would have resigned by the end of the year in the course of the normal turnover.