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United suspends change to employee bonus program after backlash

United suspends change to employee bonus program after backlash

"We will be reaching out to work groups across the company and the changes we make will better reflect your feedback", president Scott Kirby said in a memo.

The new program rolled out by United Airlines attempted to replace the quarterly performance bonus with a lottery; according to the leaked memo, airline employees who met certain performance metrics would be entered into a lottery system whereby winners were to be selected by a random draw every three months.

Kirby said he meant to axe a quarterly bonus scheme with an "exciting" lottery called core4 Score Rewards.

"United could have been more thoughtful and strategic about creating a bonus program designed to drive the kind of employee behavior and attitudes with the power to reinforce the company's commitment to customers", Garbor says.

"As we look to continue improving, we took a step back and made a decision to replace the quarterly operational bonus and ideal attendance programs with an exciting new rewards program called core4 Score Rewards", Kirby wrote.

The airlines is eliminating its quarterly performance bonus system and has brought in an unconventional lottery system, which would include prizes like vacation, cars and cash among other gifts, reports Fortune Magazine.

Introducing Alcatel 1X, the first Android Go phone
Again, what gives? Pricing is €100 for the single SIM version and €110 for the dual one - about $123 and $135, respectively. Just like the 1x, the phone also includes 16GB of internal memory that can be expanded, though in this case up to 128GB.

The dust-up over the bonus lottery showed that United is struggling to overcome a legacy of poor labor relations since its 2010 merger with Continental Airlines.

Southwest Airlines Co. has its own lottery system that awards a small number of employees cash prizes based on the number of company goals achieved each year, a spokeswoman for the carrier said. "It was unilaterally determined by management", Ken Diaz, president of United's chapter of the Association of Flight Attendants, said in a letter to his membership.

"This is insulting and a poor idea, to put it mildly", one United pilot reportedly wrote on an internal employee website reviewed by Inc. Other employees would have gotten prizes including 50 vacation packages or 10 Mercedes.

Prior to Friday's announcement, all eligible United employees could receive up to about $300 per quarter, or $1,500 per year, a United spokesperson said.

Since announcing our planned changes to the quarterly operations incentive program, we have listened carefully to the feedback and concerns you've expressed. On Monday, United is "pressing the pause button" as it considers employee feedback, Kirby said.

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