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United Airlines To Replace Employee Bonuses With Lottery

United Airlines To Replace Employee Bonuses With Lottery

The new program, which has caused massive unrest among the employees, was announced via a memo last Friday by the President Scott Kirby.

Following swift backlash from employees, United Airlines has scrapped its plans to replace quarterly employee bonuses with a lottery-based employee reward system.

When United first unveiled its plans for the program, called "core4 Score Rewards", the airline said it hoped offering meaningful rewards would "build excitement and a sense of accomplishment with more bang for the buck".

While the bonuses were discretionary and not part of any contract, "it starts to become a counted-on piece of income, and now that income might not be there", said Mike Klemm, whose International Association of Machinists and Aerospace Workers represents around 28,000 United employees.

The system would have replaced quarterly, performance-based bonuses and rewards for flawless attendance with a lottery-based system, where eligible employees would be entered into a drawing for a variety of prizes if the company hit one of its performance goals during a calendar quarter.

Under the sidelined proposal, called "core4 Score Rewards", if quarterly performance goals were met, the company would draw 1,360 employee names for cash, auto and vacation prizes ranging from $2,000 to $40,000 in cash value.

The dust-up over the bonus lottery showed that United is struggling to overcome a legacy of poor labor relations since its 2010 merger with Continental Airlines.

According to a report at Business Insider, which has seen the memo announcing the program, the maximum number of employees who will receive a bonus payout during a quarter will be 1,351, of which 73% will receive a $2,000 cash prize.

"They took away our quarterly incentive bonuses, and changed it to a deplorable new system that only rewards an elite few", said the petition. Other employees would have gotten prizes including 50 vacation packages or 10 Mercedes. It took so many years for people to feel good about what was happening. Chicago-based United employs about 88,000 personnel worldwide.

The post also complained that employees did not receive a $1,000 bonus after the new tax law passed.

So, we are pressing the pause button on these changes to review your feedback and consider the right way to move ahead.

Instead, the airline will be reaching out to employee work groups to make changes that "better reflect [employee] feedback".


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