United Air Stumbles Again as Bonus Lottery Spurs Union Backlash

Robyn Valdez
March 7, 2018

"Our intention was to introduce a better, more exciting program, but we misjudged how these changes would be received by many of you", President Scott Kirby said in a message to employees.

March 05-United Airlines on Monday reversed plans to begin awarding employee bonuses through a lottery system that angered workers.

United spokesperson Maddie King told CBS News, "we announced the new program on Friday, and quickly responded to employee feedback the next business day".

According to the Chicago Business Journal, which first broke the news, a lottery bonus system called "core4 Score Rewards" would instead be put in place.

Chelsea's 'crime against football' as City break new PL mark
Pep Guardiola's Man City have not faced many teams willing to go toe to toe with them this season. Chelsea finished 15 points ahead of City last season in romping to the league title.

Every quarter, that new program would offer a single grand prize of $100,000 to a single employee, along with 10 Mercedes C-Class sedans, big vacation packages and cash bonuses of between $2,000 and $5,000.

A discussion on the airline's internal forum, obtained by the travel website The Points Guy, included hundreds of comments about the lottery.

The lottery would have caused a majority of the airline's 90,000 workers to lose bonuses that paid up to $1,500 over the course of the year. Other employees stated that the lottery system does not appeal to them and could thus opt out of participating simply by not doing a good job. "It was unilaterally determined by management", Ken Diaz, president of United's chapter of the Association of Flight Attendants, said in a letter to his membership.

"When no one "qualifies" because they called out sick due to the most bad flu in years, or sick children, or life ... the company just makes more money for itself", she wrote.

Jordan Peele Is First Black Screenwriter To Win Best Original Screenplay
The film was nominated in three other categories but did not score wins - but that's okay, because history was still made. I want to invite you to open your hearts and your feelings to feel the reality, to feel love.

Many consumers criticized the move on social media, and both journalists and analysts ridiculed the program. United Continental has about 88,000 employees.

Although, the quarterly bonus is separate from the airline's profit-sharing payouts, according to Inc.com, the news seems particularly jarring after Southwest Airlines and American Airlines announced in January that employees will receive a $1,000 bonus, thanks to projected savings from the new tax bill.

As detailed in United's recent 2017 fourth quarter earnings release, the company distributed approximately $30 million in earned incentive payments for achieving operations performance goals during the quarter.

Though internal programs should support your organization's mission statement, vision and goals, this crisis can stand as a lesson for communicators to consider employee needs when implementing a program-not just numbers.

Ukraine welcomes Stockholm court ruling on gas transit dispute with Russian Federation
Since that date, it has been buying gas from Western Europe in order to reduce its energy dependency on Russian Federation , according to Reuters .

Other reports by Info About Network

Discuss This Article

FOLLOW OUR NEWSPAPER