Chicago Business Journal was reporting on Friday that United Airlines president Kirby (previously employed by American Airlines) had issued a memo to employees that quarterly performance bonus was replaced by lottery!
Employees weren’t exactly ecstatic because they were going to lose on average $100 to $200 a month being part of this “forced” lottery where some may “win” something. In essence, this would be a cost cutting exercise by the United management.
Here’s an excerpt from the Chicago Business Journal (access their piece here):
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.
Of course, only the winners of this lottery drawing would get the prizes, apparently leaving the rest of eligible employees with nothing to show for their contributions in helping United achieve its performance goals.
United has different profit sharing agreement with the employees that isn’t affected by this “raffle”. Just don’t be surprised if United employees engage in active “sabotage” making sure that the performance goals are not met.
It is crazy how badly the United has been mismanaged as long as I can remember (since the early 2000’s). The management/employee relationship has always been bad and this certainly won’t help.