United Airlines ditches plan to replace bonuses with lottery

09 March 2018, 03:10 | Andres Norman

United Continental Holdings was down 0.55% on Monday

United Airline

Now United says it was a 'misjudgement'.

The response on social media and internal corporate message boards was swift and angry, with commentary recorded from a range of United employees pointing out flaws and inequities in the new program.

"Our intention was to introduce a better, more exciting program, but we misjudged how these changes would be received by many of you", said Scott Kirby, president of United Continental (UAL), the holding company for the airline, in an email to employees.

United Airlines on Monday suspended plans to award quarterly bonuses through a new lottery system after backlash from employees over the weekend.

The proposed lottery system - which offered prizes ranging from a Mercedes sedan to a one-person $100k payout - would've only affected 1,361 employees, and cost the company around $18m.

It would have been available only to workers with a flawless attendance record and when the airline met certain performance targets.

The overwhelming majority of United's 90,000 workers would have lost bonuses that paid up to $1,500 over the course of the year. Other employees stated that the lottery system does not appeal to them and could thus opt out of participating simply by not doing a good job.

More than 2600 YPG militants 'neutralized' in Afrin op in Syria's north
They also seized a strategic mountain in the northeast of the enclave, a military official from the Turkish-led operation said. Ankara views the YPG as a terror organization and the Syrian branch of the Kurdistan Workers' Party ( PKK ).

Apple Inc. (NASDAQ:AAPL)'s shares become key-centric, Warren Buffett
Buffett said he keeps his hands off investment decisions by Combs and Berkshire's other investment deputy, Ted Weschler. For the full year, Berkshire reported $44.9 billion net income, or $18.22 per Class B share.

Punjab CM's son-in-law among 13 booked for bank fraud
The investigation agency has filed two FIRs against Inder Chand Chundawat, former senior branch manager at PNB's Barmer branch. In the aftermath of the Punjab National Bank scam, banks have now become more pro-active in sending complaints to the CBI.

"They took away our quarterly incentive bonuses, and changed it to a deplorable new system that only rewards an elite few", said the petition.

Chicago Business Journal, which first reported the change late Friday, noted that Kirby's memo had largely failed to create the "caring" attitude the company has been trying to develop and that the CEO can not afford to jeopardize the company's improving on-time performance.

These were posted on the internal United Airlines employee website, Flying Together.

When United first unveiled its plans for the program, called "core4 Score Rewards", the airline said it hoped offering meaningful rewards would "build excitement and a sense of accomplishment with more bang for the buck".

United, which has more than 80,000 employees, did not respond to specific questions about either the lottery program or the current bonus program. Chicago-based United employs about 88,000 personnel worldwide. Workers at the Chicago-based carrier are reportedly less than pleased.

Since announcing our planned changes to the quarterly operations incentive program, we have listened carefully to the feedback and concerns you've expressed.

So, we are pressing the pause button on these changes to review your feedback and consider the right way to move ahead. How a company treats and compensates its employees should reflect not only the values and beliefs of the company itself, but should encourage and reward every employee in the business for delivering the company's brand promise.



Other News

Trending Now

Tommy Lee 'beaten up by son'
She appeared on Piers Morgan's Life Stories , discussing her disastrous three year marriage to Lee and identifying him as abusive. Tommy has since tweeted out that after Brandon burst into his room where he and his wife were in bed and attacked him.

Ubisoft is cracking down on 'toxic' Rainbow Six: Siege players
Should players make violations, they will be notified by a pop-up in the game's user-interface and be banned momentarily. This is a "first step" toward controlling toxic behavior in Siege , the company said, and more is coming in the future.

Arsenal fansĀ“ group votes overwhelmingly for Wenger to go
Full-back Hector Bellerin is also believed to be fuming after being dropped just two hours before Sunday's game. He said: "If you love a place and they ask - I repeat, they ask - for help, you are always going to say yes".

Sri Lanka declares 10-day Emergency
Muslims in Sri Lanka are generally known as Moors are the minority ethnic group comprising 9.3% of the country's total population. Last week, at least 5 people were wounded and several shops and a mosque damaged when groups clashed in Ampara.

Bears find less expensive way of holding on to Kyle Fuller
Pace can also try to work out a long-term deal with Fuller, which would need to get done by the July 16 deadline. He started 30 games in his first two seasons out of Virginia Tech and had six interceptions and 129 tackles.

Police investigate why student at Central Michigan University gunned down his parents
University officials announced at 3:00 p.m. (2000 GMT) that students were finally being escorted out of buildings by police. Davis appeared to be hypothermic and "not making a lot of sense" when police arrested him, the chief said.

Saudi crown prince meets Egypt's Sisi on first public trip
A beaming Sisi greeted the prince at Cairo airport after he descended the red-carpeted steps of his plane. Sisi stressed to Prince Mohammed: "The security of the Arab Gulf is an integral part of Egypt's security".

NPP, BJP, regional parties to form government in Meghalaya
The National People's Party of Conrad Sangma is in the second place with 14 seats, followed by the BJP which is leading in 7. The United Democratic Party (UDP), which is a part of the BJP-led North East Democratic Alliance (NEDA), has won six seats.

Weather warning in Louth downgraded to orange
Education Minister Richard Bruton said schools and colleges across the country will reopen on Monday "where possible" . It is expected to hit Ireland harder than anywhere else, and it is predicted to be the worst snow storms since 1982.

Funeral homes invite public to help honor Rev. Billy Graham
It will be a tribute to the 1949 Los Angeles tent revivals that made Graham famous, said family spokesman Mark DeMoss. Capitol police officers who died in the line of duty protecting congressmen and civilians inside the Capitol in 1998.