Severence Travel Benefits for UA employees - Plat for MgmtDir (L1), others no status
 

As there were inaccuracies in early reports on elite status for Management & Administrators (M&A - mid to upper management below VPs) Severance travel benefits offering, which generated interest what was the real answer for travel benefits for departing UA employees, have retitled this thread into a general discussion of severance travel benefits. As the wiki can be modified by most members, that will be a good way to collect this information

Please use some sensitivity in discussing this subject, as this is a difficult time for UA employees (and many others)

WineCountryUA
UA coModerator

United offering 1K status {unclear} to employees who take severance package.
 

They will get 1k and 250k miles. However I am happy that United is throwing them a bone.

How is it unfair? People are losing their jobs!

Unfair? These people are losing their jobs.
How many of them will have the means to use their 1K status frequently?

Unfair to the fact that revenue 1ks will be competing with employee 1ks for upgrade etc. United is just doing this to save money because 1k is decently Inexpensive and they want something kind of flashy. But hey at least it’s something.

You should probably remove "Seems a bit unfair to us 1ks." They are all losing their jobs.

oh please, 99% of 1Ks are because of their job (ie. they didnt earn it anymore than these UA employees did)

You are right, I think just staying all cooped up is getting to me. Thanks for the correction.

Can't wait to hear them howl when they loose an upgrade to an employee.

Bad info
 

Just re-read the offer from HR as that was news to me. No status in the package. NRSA for a number of years and a choice of miles, a handful of confirmed tickets, or neither (avoiding imputed income taxes).

Bad info. Recommend moderators close thread before false info goes further.

This reference from JonNYC for the management and administrator severance package does not mention status but does mention of the potential of 250K miles

link

but a number of blogs are reporting the status piece based on Business Insider article (paywall)

Fake news.

Comment on one the blogs
and another blog comment

Losing my job due to incompetent mismanagement and greed, and then being tossed a few miles or tickets from a company I probably never want to see again, is not exactly a severance package I would be interested in. How about a properly funded pension and a reasonable severance package that includes cash I can use? Who cares about miles. This is nothing but useless PR fluff trying to cover for the fact that Kirby gave billions to shareholders instead of making sure his business could weather a dramatic travel recession similar to 9-11 or 2007 - events that have already happened, but could have repeated again at any time, and are therefore prudent situations to plan for.

I didn't realize that United management started the pandemic.

Giving status to a laid off employee will probably have no more material impact to elite ranks than when GS is gifted to a senior executive that is afraid to fly.

With steep cuts (like today's news of 22,000 of 25,000 UA flight attendants not needed), an economy in shambles, and disposable travel cash gone for many, I don't think they'll be flying much, if at all, to be noticable.

Let's keep this thread about the employees and their severance package.

We have no shortage of threads for discussion of the management, pre- & post-COVID,
UA Viability/ Chance of Bankruptcy/ Bailout discussion in COVID-19 Era [Consolidated]
Oscar becomes Exec Chairman, Kirby becomes CEO on 20 May 2020
COVID19 / Letters from UA Management to customers -- New message 30 April 2020

and there is general discussion about UA talking earlier about severance
United COO to employees: Consider voluntary separation

WineCountryUA
UA coModerator

99%? Well my company pays for my air travel (always F too) but I am self employed:)

Perhaps a change of title is in order to reflect no 1K status being offered.

As there are conflicting reports, added "{unclear}" to the title. Hopefully, there will be more clarity soon.

There are now more comments at various FF blogs (besides the ones posted earlier) by employees stating the reports are in error

WineCountryUA
UA coModerator

Whether or not the 1K status is accorded to voluntarily leaving employees, I think 1Ks earning status via spend/segments ought to prioritized over other 1Ks on waitlists (companions, MM companions, extended status, given, etc). Just my selfish and biased opinion :)...

What kind of time frame for 1K did the offer entail?
e.g. one/a number of years, LT?

you are not losing your job due to bad management. 95% drop in business is the reason. In any other business you would have been gone last month with that type of drop

As the moderator has pointed out, some of these information is unconfirmed. Some of the most recent headings of news and blogs are increasing the use superlative expression and speculations. I know times are tough and websites need to draw attention for readers to click to earn advertising fees. There is nothing wrong with it.

Certain websites have reported the unconfirmed offers were made to Management and Administrative employees (MS) only and not for everyone. I would be insulted if I were a front-line employee that some of those MS employees are most likely to find jobs with their more transferable skill sets than pilots, FAs, customer service agents and baggage handlers. UA is creating a two-class system.

If I were to the chop, I'd be more concerned with health and medical coverage especially in this challenging time, and any unfunded post-retirement plan and pension scheme. Offering unconfirmed 1K status and 250K miles may seem of good value to some frequent flyers as incentives, I actually think it is an insult to all UA employees not just MS. One can side with UA for being creative, but these unconfirmed offers seem to be inconsequential and lack of understanding of reality. I would also think it is also important to have a sound HR policy in terms of providing emotional support, training and job placement services etc. as part of the furlough benefits. Airlines status and points are important to many in FT community, but they are useless when people don't fly. Save these superficial benefits and give employees something they can benefit from during time of uncertainty.

I hope frequent flyers in this forum are sensitive enough not to venture into discussions on status dilution or commenting on the value of 250K miles etc.

Add to the fact that imputed income taxes are due for those who take the 250K miles (i the neighborhood of $3K)... ugh

"Some animals are more equal than others" - George Orwell's Animal Farm (1945) stands up through the decades...

And leisure 1Ks paying with their own money should be prioritized about OPM travelers who may not have a choice of airlines based on corporate contracts. And those who started their trip crammed in a CR2 should go before those who arrived in Polaris. Just my selfish and biased opinion ;)

On topic, I don’t think it is any of our business to tell United how they should compensate departing employees.

Didn’t Smisek get some fancy travel benefits package, too? That two class system is nothing new.

No such offers have been made to us pilots. There are some who are hoping for some kind of early-out package but I doubt FF status or miles would be of much interest as those who would be likely to take such an offer are eligible for retiree pass travel benefits.

As (currently, sort of) one of the former and (in the past) one of the latter, I do not begrudge OPM travelers. $/segment hurdlers (own $ or OP's $) should get priority w/I Premier levels.

I'm not an L1 (MDs and above), but my package offering states under the Travel privileges: Premier Platinum product (for L1).

Or Flight Attendants (who are the largest work group by headcount, I believe)

Gonna guess that since Mgmt/Admin are not represented by a labor contract that specifies terms of separation, they (UA) could come up with a package with relative ease for them. Groups that are represented by a collective bargaining agreement, on the other hand don't get unilateral packagaes dictated to them by the company,m but rater must go thru the CBA leadership for approval.

I feel like they should offer at least 1K to an MD who voluntarily leaves....

Management has worked hard to devalue elite benefits. I think it'd be much more valuable just to have confirmable 'coupons' that book into Z or something, unless you can combine status AND flight privileges, which I don't think you can.

So sounds like the offers under discussion are offers for non-union staff. I assume unions negotiated contracts that cover methodology and compensation for staff decreases. Also, many executives may have specific contracts of their own which cover early termination. I liken the offer to take miles and temporary status as incentive or compensation as the equivalent of the attempt to withhold refunds and instead give future credits.

to edit the details from the sticky is 191 Managing Directors.

Wow I didn't hear that. Do you have a cite / link? (I am not doubting you; just genuinely curious about the details.)

ETA: Never mind, I found something. Sounds like it is only for June (so far). I was thinking it was something more long-term.

UA to Have Excess of 22,000 F/As for June

I feel like the government should invalidate the golden parachute packages of any member of senior management who leaves voluntarily or is terminated - everyone gets the same baseline severance package based on current salary and years of service.

Dream on.

might not be an issue for many who become unemployed, e.g. have no/sharply reduced income.

This offer is another indicator that UA considers MP to be a viable asset and is here to stay.