Mar 5, 2018, 1:08 pm
Last edit by: WineCountryUA
Update 5 March 2018 per Chicago Tribune (and confirmed by internal employee memo
United walks back new bonus lottery system that angered employees
Per Chicago Business Journal, 2 March 2018
United Airlines employees shocked: Bonuses replaced with lottery
United walks back new bonus lottery system that angered employees
United Airlines on Monday reversed plans to begin awarding bonuses through a lottery system that angered employees.
Scott Kirby, president of the Chicago-based airline, said United was “pressing the pause button” on changes that would have handed out larger bonuses to only a fraction of its workers after hearing employees’ feedback since announcing the changes late last week.
Scott Kirby, president of the Chicago-based airline, said United was “pressing the pause button” on changes that would have handed out larger bonuses to only a fraction of its workers after hearing employees’ feedback since announcing the changes late last week.
Per Chicago Business Journal, 2 March 2018
United Airlines employees shocked: Bonuses replaced with lottery
United Airlines President Scott Kirby sent shock waves through the employee ranks at the Chicago-based airline today.
Kirby issued an employee memo in which he announced that the Chicago-based airline is dropping the quarterly performance bonuses the carrier had been giving out to all employees qualified to receive them.
Kirby said in the memo, obtained by the Chicago Business Journal, that the bonus payouts are being replaced with a new program called "core4 Score Rewards," which Kirby said would include quarterly prizes like cash ranging from $2,000 to $40,000, luxury cars, vacation packages, and a grand of prize of $100,000 awarded to one eligible employee per quarter.
Kirby issued an employee memo in which he announced that the Chicago-based airline is dropping the quarterly performance bonuses the carrier had been giving out to all employees qualified to receive them.
Kirby said in the memo, obtained by the Chicago Business Journal, that the bonus payouts are being replaced with a new program called "core4 Score Rewards," which Kirby said would include quarterly prizes like cash ranging from $2,000 to $40,000, luxury cars, vacation packages, and a grand of prize of $100,000 awarded to one eligible employee per quarter.
UA employees shocked: (qtrly performance) Bonuses replaced with lottery (on "pause")
Mar 6, 2018, 1:53 pm
#211
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One thing that is different here though to my personal experiences and perhaps a sign of the toxicity of United as a company is (1) that employees immediately took their outrage public and (2) the rampant ultra-negativity vs leadership which is indicative of very low trust and bad labor relations. It seems like employees at UA are willing to use the public's negative view of United and thus the media's willingness to do negative stories on United as a way of blackmailing leadership into doing as they wish.
The behavior isn't self-defeating at a personal level: senior craft employees have jobs (and pilots and FAs the routes of their choice) so long as United remains in business.
Mar 6, 2018, 1:59 pm
#212
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Join Date: Apr 2003
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Posts: 12,332
I salut AA for masterminding Scott Kirby’s move to UA.
Well played AA by getting rid of an “out of touch” JxxK and also destroying your competitor’s employee morales at the same time.
Well played AA!
Well played AA by getting rid of an “out of touch” JxxK and also destroying your competitor’s employee morales at the same time.
Well played AA!
Mar 6, 2018, 2:36 pm
#213
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Posts: 57,592
Mar 6, 2018, 2:46 pm
#214
Join Date: Mar 2012
Programs: Mileage Plus 1K; Marriott Platinum; Hilton Gold
Posts: 6,355
Could it be a Manchurian candidate strategy? If so, I think the trigger word is "Bonus".
Mar 6, 2018, 2:51 pm
#215
Join Date: Jan 2017
Posts: 805
This is just one of those moves that in no way can be seen in a positive manner. It just screams desperation for short term profits. Just about any employee at United should be able to conclude this will just piss off long term employees and make people leave.
Mar 6, 2018, 3:36 pm
#216
Join Date: Mar 2013
Location: LBB
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Posts: 2,820
Well you just end up with all the employees the other airlines don't want.
This is just one of those moves that in no way can be seen in a positive manner. It just screams desperation for short term profits. Just about any employee at United should be able to conclude this will just piss off long term employees and make people leave.
This is just one of those moves that in no way can be seen in a positive manner. It just screams desperation for short term profits. Just about any employee at United should be able to conclude this will just piss off long term employees and make people leave.
Mar 6, 2018, 4:30 pm
#217
Join Date: Oct 2015
Location: SAN
Programs: 1K (since 2008), *G (since 1990), 1MM
Posts: 3,219
I posted this on the compassion training thread but it is relevant for this thread too. Treat employees like adults and they will behave like adults. Treat them like misbehaving children and that is what you will get. Give them a Russian Roulette incentive plan and that is the behaviour you will achieve.
Seriously, where did the Senior leadership team get their training on incentives for employees to achieve desired outcomes? And where is the HR department in this debacle? Or is it the Human Remains department - can't hold a job elsewhere in the organization so put them in HR?
Dreadful way to treat your employees.
Seriously, where did the Senior leadership team get their training on incentives for employees to achieve desired outcomes? And where is the HR department in this debacle? Or is it the Human Remains department - can't hold a job elsewhere in the organization so put them in HR?
Dreadful way to treat your employees.
Mar 6, 2018, 4:49 pm
#218
Join Date: Aug 2012
Location: VPS
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Posts: 7,265
Despite award program devaluations, shrinking leg room, and the whole basic economy thing, I stick with the legacy carriers because they're the most likely to be able to fix a problem and get me back on route to my planned destination better than the LCCs. A big part of this is experienced gate agents and phone agents that do indeed stay around long enough to figure out how to finesse balky computer systems so that this consumer faces minimal disruption. Those people are so key in bringing profits into the system, and employee churn is going to impact the bottom line- you don't want the race to the bottom of 'well if we aren't good anymore, at least we got cheap in order to sell tickets'
Mar 7, 2018, 3:24 pm
#219
Join Date: May 2015
Programs: All the programs!
Posts: 1,006
Seriously, where did the Senior leadership team get their training on incentives for employees to achieve desired outcomes? And where is the HR department in this debacle? Or is it the Human Remains department - can't hold a job elsewhere in the organization so put them in HR?
Dreadful way to treat your employees.
Dreadful way to treat your employees.
Last edited by oopl; Mar 7, 2018 at 4:05 pm
Mar 8, 2018, 12:55 pm
#221
Join Date: Jul 2005
Location: NYC
Programs: Marriott Platinum Elite, National Executive, United Gold
Posts: 1,181
Considering UAL had $3.8 billion in cash and equivalents at December 31, I think this is more about poor decision making rather than liquidity constraints.
Mar 8, 2018, 2:34 pm
#222
Join Date: Jun 2015
Location: SNA/LAX
Programs: DL Diamond, SW A List, HHonors Diamond, SPG Platinum, Marriott Platinum United 1K
Posts: 202
This sort of mismanagement is what is making me decide to move to a different carrier for my business. Yes the big three (or four) are basically all the same, but United is going downhill faster than Delta. I dont like that Delta only gets 4 upgrades per year on international, but Uniteds management just really has no clue what the employees and customers want.
...but...
...having more GUCs and a decent upgrade chance trumps a smiley FA on Monday morning, so not regretting my decision to switch (yet)
Mar 8, 2018, 2:45 pm
#224
Join Date: May 2015
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Mar 8, 2018, 3:30 pm
#225
Join Date: Dec 2014
Programs: UA GS ,QF Plat
Posts: 686
It was called "Going the Extra Mile", which FTers consolidated as "GTEM" .
There was a report that GS members got some type of similar chits in their annual packet this year, but didn't sound like a fully-formed program like before.
It was a great program, for both customers and staff....so doubt it will come back.
There was a report that GS members got some type of similar chits in their annual packet this year, but didn't sound like a fully-formed program like before.
It was a great program, for both customers and staff....so doubt it will come back.