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 3, 2018, 7:20 am
#62
A FlyerTalk Posting Legend
Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,404
Mar 3, 2018, 9:00 am
#63
Join Date: Jun 2007
Location: SRQ, PDX
Programs: UA 1 MM, AA, DL
Posts: 929
UA has had contentious relationships with their unions for more than 50 years. With the FAs, it started in the late 60s, when they filed a large class action suit against UA for wrongful termination ...and won, costing UA tens of millions in compensation. Downhill ever since.
Mar 3, 2018, 9:37 am
#66
FlyerTalk Evangelist
Join Date: Apr 2006
Location: Los Angeles, California
Programs: United, American, Delta, Hyatt, Hilton, Hertz, Marriott
Posts: 14,793
Mar 3, 2018, 9:44 am
#67
Join Date: Mar 2016
Location: Houston/DC
Programs: UA 1K, 1MM
Posts: 564
I don't really care how they choose to compensate their employees as long I still receive great service. Isn't that what really matters?
If my level of service suffers due to this new program, then I will complain that it did not work.
If my level of service suffers due to this new program, then I will complain that it did not work.
Mar 3, 2018, 10:39 am
#69
Join Date: May 2013
Posts: 3,361
Yeah, Matthew estimates savings of $8M per quarter. Some good details here: United Airlines Inflames Employees With Bonus Cutbacks - Live and Let's Fly
Mar 3, 2018, 11:05 am
#70
A FlyerTalk Posting Legend
Join Date: Jun 2005
Posts: 57,489
Yeah, Matthew estimates savings of $8M per quarter. Some good details here: United Airlines Inflames Employees With Bonus Cutbacks - Live and Let's Fly
Folks, I’m not making this up. It seems that Kirby has been listening to Kenneth Copeland or Creflo Dollar too much lately…I’ve heard from many gate agents and FAs about this today…all are angry and feel betrayed. And unfortunately, that means customers will likely feel the brunt of this disappointment and sense of betrayal at airports and in the air.
Mar 3, 2018, 11:13 am
#71
Join Date: Jul 2005
Posts: 2,324
I think it's fair to say there are some inside the company (and possibly a few on the board) who thought the prior regime's labor strategy would have bourne fruit given more time, and that Oscar therefore prematurely capitulated to outsized deals. The real question is whether Kirby would have been, or is, in that camp of thought.
Mar 3, 2018, 11:14 am
#72
Join Date: Nov 2004
Location: Go west young man!
Posts: 549
Forced lottery
At the most basic level, this program is equivalent to giving everyone a bonus, but then forcing everyone to buy a lottery ticket with it. It's economically suboptimal because few people would choose to spend their bonus money this way.
Mar 3, 2018, 11:17 am
#73
formerly 1984SW
Join Date: Aug 2008
Location: Merida, Yucatan, Mexico
Programs: UA
Posts: 1,058
The UA employee intranet page announcing the "change you will like" announcement for the lottery was hit with 900 (so far...) negative comments from employees. They were addressed (so they think) by a three-part reply by:
Anthony Scattone
VP Total Rewards
There is a Vice President position: "VP Total Rewards"???
Anthony Scattone
VP Total Rewards
There is a Vice President position: "VP Total Rewards"???
Mar 3, 2018, 11:21 am
#74
A FlyerTalk Posting Legend
Join Date: Apr 2004
Location: GVA (Greater Vancouver Area)
Programs: DREAD Gold; UA 1.035MM; Bonvoy Au-197; PCC Elite+; CCC Elite+; MSC C-12; CWC Au-197; WoH Dis
Posts: 52,116
Mar 3, 2018, 11:26 am
#75
Moderator: Midwest, Las Vegas & Dining Buzz
Join Date: Jun 2001
Location: Chicago, Illinois
Posts: 17,970
Anthony Scattone
VP Total Rewards
There is a Vice President position: "VP Total Rewards"???Ironically, "Total Rewards" is the name for Caesar's/Harrah's Entertainment's Gaming Loyalty Program. How coincidental...
VP Total Rewards
There is a Vice President position: "VP Total Rewards"???Ironically, "Total Rewards" is the name for Caesar's/Harrah's Entertainment's Gaming Loyalty Program. How coincidental...
