Illinois Employees Overjoyed by Hefty Bonuses

Dec. 01, 2008— -- When Jose Rojas opened the hand-signed thank you note from his employers at PEER Bearing Co. in Waukegan, Ill., he could hardly believe his eyes -- a bonus check for $10,000.

"I actually opened up the envelope about four times before I really figured out what was in it," he said of the mid-September surprise.

The company had been run by the Spungen family for three generations. But earlier this year, a Swedish company bought the business for an undisclosed amount. The Spungens could have taken a separate pot of money and retired but, instead, they split $6.6 million among the company's 230 workers, giving them a major, unexpected holiday bonus.

"It was a good check, to say the least," Rojas joked of the bonuses that were based on each worker's length of employment.

Rojas said he will save the bonus toward his son's education.

Dave Tiderman, who has spent more than two decades with the company, received a $35,000 bonus. "I was speechless," he said. "I didn't know really what to think of it. Obviously, you're as grateful as you can possibly be."

For many of the employees, struggling to cope with the tough economy, the bonuses couldn't have come at a better time.

"A lot of people, they were behind on their mortgage, and this really took them over the top," Rojas said. "It took them over the top, so they're not going to lose their house."

Danny Spungen, co-owner of PEER Bearing and grandson of company founder Nathan Spungen, said that his grandfather was always especially charitable. The Spungens devised their bonus formula a year before the company's acquisition, as a symbol of their gratitude for their hard-working employees.

"These employees aren't just employees, they're extended family," Spungen said. "We wanted to make sure that we did everything possible to show our appreciation."

The company's gracious deeds were met by tears of joy from many employees. As an added bonus to this holiday surprise, most of the workers will be able to keep their jobs under the new management.