This makes it in the employee's interest to obfuscate and extend any remediation, to get paid more.
But would I be as motivated to stop the root cause of the recurring issues that keeps giving me an extra $3k every shift? Well, I probably would, but my coworkers already need to be goaded into fixing root causes, and they're not getting paid extra!
In general, I think conflicts of interest must be handled carefully, and ideally avoided. Paying 10x wages when incidents happen is a clear conflict of interest.