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UA employees shocked: (qtrly performance) Bonuses replaced with lottery (on "pause")

UA employees shocked: (qtrly performance) Bonuses replaced with lottery (on "pause")

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Old Mar 5, 18, 5:08 am   -   Wikipost
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Update 5 March 2018 per Chicago Tribune (and confirmed by internal employee memo
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.

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.
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Old Mar 4, 18, 5:05 pm
  #121  
 
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Originally Posted by bocastephen View Post
In a way I'm glad this is happening as it will rally employees against management, and perhaps align the interests of employees and customers on the same side.
I think that's a naive line of thinking. Staff, management and customers typically have very different interests. Paying staff more doesn't automatically make them provide a better service. I've seen people on obscene salaries providing awful service, worse than what you may get from some high school kid in a part-time job.

I think the problem at United, more than anything, is the culture of the place and that's on management, but it's also on the long-time staff who say they provide service 'with a smile', but in reality are just as likely to glare, scowl or roll their eyes at customers.
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Old Mar 4, 18, 5:31 pm
  #122  
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Originally Posted by Ber2dca View Post
I think that's a naive line of thinking. Staff, management and customers typically have very different interests. Paying staff more doesn't automatically make them provide a better service. I've seen people on obscene salaries providing awful service, worse than what you may get from some high school kid in a part-time job.

I think the problem at United, more than anything, is the culture of the place and that's on management, but it's also on the long-time staff who say they provide service 'with a smile', but in reality are just as likely to glare, scowl or roll their eyes at customers.
Paying more is not a primary motivation for better performance, your analysis is missing the integral features of what drives people to do better for an organization.
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Old Mar 4, 18, 5:51 pm
  #123  
 
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Originally Posted by mahasamatman View Post
Some irrelevant numbers that are 100% driven by Kirby's bonus. He cares about nothing else.
This is essentially what is destroying US corporations. United had horrible employee sat, has had horrible publicity, isn't viewed positively by travelers and their board of directors is a bunch of morons that let this happen. Scott Kirby will do whatever makes himself the next wealthy CEO. Like many CEOs, he thinks cutting and increasing earnings is the way to success. Like Smisek he feels passengers are trapped. I just sat next to a United Pilot and told him I thought Oscar was great, but Scott Kirby was as bad as Smisek. He completely agreed with me and said the entire workforce is worried that Scott Kirby will destroy the airline.
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Old Mar 4, 18, 6:06 pm
  #124  
 
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United Staff has enough benefits.
They get to fly essentially free by paying employee rates. They also get to standby in every class.
Most of the staff that I know bring on their family to sit in Business/First on long international flights. We as loyal customers don't get upgraded.
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Old Mar 4, 18, 6:19 pm
  #125  
 
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It's almost as if airline industry consolidation has led to a situation where employees as well as customers have very little leverage against regional monopolies.

This is the logical result of what happens when there is no completion for customers or labor. Shareholders are the only winners.
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Old Mar 4, 18, 7:26 pm
  #126  
 
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Originally Posted by enviroian View Post
Exactly. I really don't understand why people on here are upset. They are just another company. If the employees don't like what they get then move to another company. I could careless about United's employees comp plan--it's of total irrelevance to me. Do I check out the bonus plans of Toro Mfg when I buy a lawnmower? When I buy a pair of Levi's should I be concerned if Tom Smith got his quarterly bonus? Of course not. What a bunch of silly responses on here.
In simple terms when employees are really unhappy and feel cheated and used they don't give their best effort and the end product suffers. The employees are a big part of an airline's end product because there is a lot of personal interaction every time we fly. With a change like this I expect to see the end product suffer and that is going to effect me. Going back to the days of Frank Lorenzo running CO into the ground the service got so bad I simply stopped flying with them until Gordon Bethune came in and fixed things up. In those days I had a lot of options of carriers but today my options are very limted with the mergers and demise of many carriers so the whole situation concerns me going forward. Yes, it smack of Jeff S and he was a clone of Frank Lorenzo....My concern for the employees comes from my concerns about my own flying needs being met.
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Old Mar 4, 18, 7:36 pm
  #127  
 
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As somewhat of an aside, why do there seem to be so many awful executives in the airline industry? I've worked for some companies with high turnover and questionable management, but nothing like this.
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Old Mar 4, 18, 7:50 pm
  #128  
 
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Originally Posted by mahasamatman View Post
Oscar, too. He brought this disaster upon the airline.


Strikes are never off the table. If profit sharing was part of the contract, it's already been broken.
Striking over this isn’t an option because it’s not a contractual issue, and the Railway Labor Act prevents an airline employee group from striking until a lot of effort is made to come to an agreement on an amendable contract.

That said, this is anything but an improvement or incentive for pretty much any wage-earning employee.

FAB
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Old Mar 4, 18, 7:53 pm
  #129  
 
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Originally Posted by bocastephen View Post
Paying more is not a primary motivation for better performance, your analysis is missing the integral features of what drives people to do better for an organization.
I didn't provide any particular analysis of what makes people do better for an organization, but this thread is about money - bonus payments to be specific. Quite a few people in this thread created a very direct relationship between payments to staff and the level of service they provide. But that actually depends on a lot of other factors, many of which can be summarized as 'culture'. And I am not convinced bonus payments are required to create a culture that breeds success nor do I believe that bonuses always lead to any performance improvements.

I'd be quite curious to see what their bonus structure has been up to this point, so if a UA staffer who posts here wants to explain the exact nature of their bonuses, that would be pretty helpful.
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Old Mar 4, 18, 7:57 pm
  #130  
 
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Smisek caught a lot of grief on this board, mostly justified. But Kirby is worse and needs to go.
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Old Mar 4, 18, 7:59 pm
  #131  
 
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Originally Posted by Austin787 View Post
I'd welcome the return of Jeff Smisek at this point - at least United was improving in his last two years.
Jeff Smisek "resigned" in September, 2015. United Airlines decided limes were too expensive in May, 2014, the same year their net income was more than a billion dollars.

Last edited by artvandalay; Mar 4, 18 at 8:07 pm
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Old Mar 4, 18, 7:59 pm
  #132  
 
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Originally Posted by thunderlounge View Post
“Congratulations, you’ve won a new Mercedes luxury car!...


We’ll send you the tax bill.”


Oofff.
I already have a car. I bought it with the money from my last few profit sharing payments. It was a sure thing.

FAB
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Old Mar 4, 18, 8:21 pm
  #133  
 
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Thumbs down

UAL now has a job posting up "Compensation Program Design - Manager" on their united.jobs website.
"
The position works under the leadership and direction of the Director, Recognition and Incentive programs and leads the development, implementation,
administration and communication of all non-executive, non-union employee compensation programs, including base salary, annual or periodic incentives,
long term incentives, profit sharing, job titling and level architecture, business-specific incentives and other related programs. The position will be expected to
resolve complex compensation issues throughout all levels of the company, while balancing the company’s and employee’s best interest. The position will serve
as the primary liaison between the compensation team and HR Technology, IT, Payroll, Finance and external vendors to support the management of the
annual compensation cycle. Major responsibilities include ownership of market pricing strategy, project management, implementation and
maintenance of compensation tools for the business, and technology solutions for salary surveys and market data analysis. Other responsibilities
include compensation data analysis, modeling, and subject matter expertise on market trends and best practices to support the overall Total Rewards strategy.
"

I hope this is backfilling the person fired for coming up with this stupid idea aka "Total Rewards strategy". Considering this is UAL, I'll assume that is not the case.

Yea, good luck filling that position.
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Old Mar 4, 18, 8:21 pm
  #134  
 
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The spawn of America West/USAirways have managed to destroy customer and employee morale at AA and UA.

Wish UA had brought back Bethune instead of this Kirby clown.
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Old Mar 4, 18, 8:57 pm
  #135  
 
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Maybe Kirby is tanking UAL on purpose, at the bidding of AA, so he can later join AA again after UAL's demise?
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