Job benefits

(EXTRACT FROM “THE FIRM” BY J. GRISHAM)

Ø 1) What kind of benefits do people have at their jobs? Choose from the following: the high base salary, a raise in salary about …% each year, a bonus at the end of each year, low-interest mortgage loan for buying a house, a car, complete medical and dental coverage for the whole family, a retirement plan, vacations. Could you add anything else?

Ø 2) Read the first extract from the text from the beginning up to “What kind of rate? ” and translate it into Russian.

Ø 3) Read the second extract from “What kind of rate? ” up to “What about vacations? ” and answer the questions:

a) Will there be any financial and other difficulties for Mitchell to pay for the house? Prove by the text.

b) On what conditions does the firm provide the BMW?

c) Why wasn’t Mitchell impressed with medical benefits?

d) What kind of retirement plan does the firm offer?

e) What is the goal of the firm concerning retirement?

Ø 4) Read the third extract from “What about vacations? ” and up to the end and name the statements which are true:

a) The firm recognizes the value of leisure,

b) The firm provides three day vacations twice a year,

c) The firm provides the signing bonus: a cheque for two thousand dollars during three years,

d) They want the signing bonus to be spent exclusively on wardrobe,

e) They expect their attorneys to dress sharp and conservative,

f) The firm invests a lot of money in Mitchell and it expects him to be productive.

(1) As expected, the office was a power one with agreat view. It was in one of the prized corners on the fourth floor. McKnight, the managing partner, asked Mitch to have a seat at a small conference table next to the sofa. A secretary was sent for coffee.

McKnight asked him about his visit so far, and Mitch said he was quite impressed.

“Mitch, I want to nail down the specifics of our offer.” “Certainly.”

“The base salary is eighty thousand for the first year. When you pass the bar exam you receive a five thousand dollar raise. Not a bonus, but a raise. The exam is given sometime in August and you’ll spend most of your summer reviewing for it. We have our own bar study courses and you’ll receive extensive tutoring from some of the partners. This is done primarily on firm time. As you know, most firms put you to work and expect you to study on your own time. Not us. No associate of this firm has ever flunked the bar exam, and we’re not worried about you breaking with tradition. Eighty thousand initially, up to eighty-five in six months. Once you’ve been here a year, you’ll be raised to ninety thousand, plus you’ll get a bonus each December based on the profits and performance during the prior twelve months. Last year the average bonus for asso­ciates was nine thousand. As you know, profit sharing with associates is extremely rare for law firms. Any questions about the salary? ” “What happens after the second year? ” “Your base salary is raised about ten percent a year until you become a partner. Neither the raises nor the bonuses are guaranteed. They are based on performance.”

“Fair enough.”

“As you know, it is very important to us that you buy a home. It adds stability and prestige and we’re very concerned about these things, especially with our associates. The firm provides a low-interest mortgage loan, thirty years, fixed rate, nonassumable, should you decide to sell in a few years. It’s a one shot deal, available only for your first home. After that you’re on your own.”

“What kind of rate? ”

(2) “As low as possible without running afoul with the IRS. Current market rate is around ten, ten and a half. We should be able to get you a rate of seven to eight percent. We represent some banks, and they assist us. With this salary, you’ll have no trouble qualifying. In fact, the firm will sign on as a guarantor if necessary.”

“That’s very generous, Mr. McKnight.”

“It’s important to us. And we don't lose any money on the deal. Once you find a house, our real estate section handles everything. All you have to do is move in.”

“What about the BMW? ”

Mr.McKnight chuckled. “We started that about ten years ago and it’s proved to be quite an inducement. It’s very simple. You pick out a BMW, one of the smaller ones; we lease it for three years and give you the keys. We pay for tags, insurance, maintenance. At the end of three years you can buy it from the leasing company for the fair market value. It’s also a one shot deal.”

“That’s very tempting.”

“We know.”

Mr.McKnight looked at his legal pad. “We provide com­plete medical and dental coverage for the entire family. Preg­nancies, checkups, braces, everything. Paid entirely by the firm.”

Mitch nodded, but was not impressed. This was standard.

“We have a retirement plan second to none. For every dollar you invest, the firm matches it with two, provided, however, you invest at least ten percent of your base pay. Let’s say you start at eighty, and the first year you set aside eight thousand. “The firm kicks in sixteen, so you’ve got twenty-four after the first year. A money pro in New York handles it and last year our retirement earned nineteen percent. Not bad. Invest for twenty years and you're a millionaire at forty-five, just off re­tirement. One stipulation: If you bail out before twenty years, you lose everything but the money you put in, with no income earned on that money.”

“Sounds rather harsh.”

“No, actually it’s rather generous. Find me another firm or company matching two to one. There are none, to my knowledge. It’s our way of taking care of ourselves. Many of our partners retire at fifty, some at forty-five. We have no mandatory retirement, and some work into their sixties and seventies. To each his own. Our goal is simply to ensure a generous pension and make early retirement an option.”

“What about vacations? ”

(3) “Book early, especially for Vail and the Caymans. You buy the air fare, but the condos are free. We do a lot of business in the Caymans and from time to time we’ll send you down for two or three days and write the whole thing off. Those trips are not counted as vacation, and you’ll get one every year or so. We work hard, Mitch, and we recognize the value of lei­sure.”

Mitch nodded his approval and dreamed of lying on a sun-drenched beach in the Caribbean, sipping on a pina colada watching string bikinis.

“Do you know about the signing bonus? ”

“No, but it sounds interesting.”

“If you join our firm we hand you a check for five thousand. We prefer that you spend the bulk of it on a new wardrobe. After seven years of jeans and flannel shirts, your inventory of suits is probably low, and we realize it. Appearance is very important to us. We expect our attorneys to dress sharp and conservative. There’s no dress code, but you’ll get the pic­ture.”

Did he say five thousand dollars? For clothes? Mitch currently owned two suits, and he was wearing one of them. He kept a straight face and did not smile.

“We want you happy. We take pride in our zero turnover rate, and we go the extra mile to keep careers on track. It’s your decision. The firm will soon invest a lot of money in you, and we want you to be productive.”

Mitch sipped his coffee and searched for another question.

“Anything else, Mitch? ”

“No, sir. I can’t think of anything.”