wnol.info March 22 2018

United Air Stumbles Again as Bonus Lottery Spurs Union Backlash

March 22 2018, 05:46 | Alonzo Simpson

United Airlines Announces Lottery to Replace Bonuses

United Said It'll Give Out $100K Prize. Workers Despise the Idea

Hundreds of United employees signed a Change.org petition calling for the reinstatement of bonuses - and the airline was skewered for trying to peddle the lottery as a step up in worker compensation when, in reality, it was a cost-saving measure. We will be reaching out to workgroups across the company and the changes we make will better reflect your feedback.

So, we are pressing the pause button on these changes to review your feedback and consider the right way to move ahead.

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.

"Our intention was to introduce a better, more exciting program, but we misjudged how these changes would be received by many of you", Kirby said in a letter to employees on Monday. The memo announcing the program reportedly said a maximum of 1,361 employees would receive a bonus each quarter.

"As we look to continue improving, we took a step back and chose to replace the quarterly operational bonus and ideal attendance programs with an exciting new rewards program", Kirby wrote a memo sent to employees on Friday.

"The reason for this change goes to the heart of our strategy: offering meaningful rewards will build excitement and a sense of accomplishment with more bang for the buck", Kirby said in last Friday's announcement. United, of course, suffered a series of disastrous public relations incidences past year and has been struggling to rebuild its image.

In the recent years, United Airlines have been in the news for wrong reasons. In February, Delta announced it would pay more than $1.1 billion in profit sharing bonuses, thanks also in part to tax bill savings-although this is also the fifth consecutive year that Delta has paid employees more than $1 billion in profit sharing. The Chicago-based airline also added a new wrinkle: To be eligible, workers needed ideal attendance for the quarter. As reported by the Chicago Business Journal, the program was introduced without warning by means of an internal memo penned by United Airlines president Scott Kirby, and it only took a few days of boisterous criticism by employees to roll the program back.

"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.

On Monday, Kirby said the company is "pressing the pause button" on the new bonus system in response to employee "feedback and concerns" in a follow-up email to employees the company provided to Business Insider.

Apparently, luxury autos and deluxe vacations will be among the prizes being given away.

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