United Air hits pause on changes to bonus program after employee uproar

United Air hits pause on changes to bonus program after employee uproar

United Air hits pause on changes to bonus program after employee uproar

United Airlines appears to have had a change of heart about its decision to replace quarterly employee bonuses with a lottery system.

United Airlines is rethinking a plan to replace its modest monthly bonuses with a lottery system that would have offered large rewards to a few workers at random.

It was roundly criticized by workers' feedback. "We are pressing the pause button", he wrote.

"Our intention was to introduce a better, more exciting program, but we misjudged how these changes would be received by many of you", Kirby said in a letter to employees on Monday. The second prize was to win one of 10 Mercedes-Benz C-Class sedans, or $40,000 in cash.

The Chicago-based airline decided last Friday to change their employee bonus program to a tiered, lottery rewards system with prizes that included vacation packages, luxury cars and up to $100,000 in cash.

"We announced a new internal program based on United meeting certain operational and dependability metrics as a way of offering meaningful rewards to our employees", a company spokesman said last week. United, of course, suffered a series of disastrous public relations incidences a year ago and has been struggling to rebuild its image.

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United did not outline what changes it would seek to make to its bonus program.

United Airlines employees riled against the lottery program, which they noticed would have saved the airline millions of dollars compared to the bonus structure that has been in place for years. In February, Delta announced it would pay more than $1.1 billion in profit sharing bonuses, thanks also in part to tax bill savings-although this is also the fifth consecutive year that Delta has paid employees more than $1 billion in profit sharing.

After dealing with a string of scandalous incidents ranging from unsafe practices to mistreatment of passengers and from confusing ticket pricing to overbooking, United Airlines introduced a performance benchmark system in early January; the goal was to entice employees to exercise higher care for passengers and for overall operations.

The core4 program Kirby referenced is created to make employees at United a more caring lot as they carry out their daily duties at the airline. "We believe that this new program will build excitement and a sense of accomplishment as we continue to set all-time operational records that result in an experience that our customers value".

Upon reading comments made by staff members and seeing negative press coverage, it did not take long for United Airlines leaders to cancel the bonus lottery scheme and return to the old system.

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