Aug. 16--Last year was another record for Nucor, but the Charlotte steelmaker knew this would be a rough year, which raised a question: Should the company pay employees their traditional extra bonus for an up year?

Base wages make up about one-third of compensation for Nucor steel mill workers. The rest of their pay is tied to production, and by the end of 2008, that was down.

Still, Nucor paid the $2,000 bonuses earlier this year.

"We knew our people were hurting so we paid out that special bonus," said chief executive Dan DiMicco. "We knew it would help our employees more than keeping it in the bank."

Nucor prides itself on never having laid off workers, especially challenging in this deep downturn. (Wholly owned subsidiaries, which have different pay plans, have had job cuts.) In addition to the special bonus, the company has maintained generous benefits, such as giving employees $3,000 per child per year toward college tuition. DiMicco credits a business strategy of keeping debt low and building a cushion during good times.

"The whole idea is to get through this thing with your team intact and be ready to go when times get good again," he said. "Our focus during these tough times is to make sure we're communicating, making sure our people are focused more than ever on safety ... customer service ... quality -- the things you have control over."

DiMicco has been gratified by employee initiatives to help prep the company for a rebound and cut costs. They're using downtime to do extra maintenance on equipment. They're cutting grass and doing other outdoor maintenance at the plants. Some divisions are even cleaning their bathrooms to save money.

"They go further than we would ever think to ask," DiMicco said. "It makes you feel really good about being a leader in this company when you have that kind of support."

About two months ago, Nucor began offering strapped employees the option to tap the profit-sharing plan, which is in addition to the company's 401(k). Employees must first undergo financial counseling, paid for by the company. The counselors may be able to help negotiate with lenders or take other steps to minimize withdrawals from the profit-sharing plan, which is their retirement plan.

"We've never done this before, but we've never been working half-weeks," DiMicco said.

To keep himself focused, he's making sure he keeps his routine of working out with his wife. He's also found time with family and friends more precious.

"When you've got people around you love and who love you, it helps deal with these tough times."

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