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United Scraps Goofy Bonus Plan


United Airlines Inc. (UAL) has ditched a plan to replace its quarterly bonus program with a lottery-style drawing for prizes after it received flak from employees.

Earlier, United Airlines announced its plans to cancel a quarterly bonus program for its employees and replace it with a lottery-style drawing with prizes that include cash, luxury cars and vacation packages. However, the new program reportedly enraged the airline's employees.

The new program included a grand prize of $100,000 for one employee in each quarter, along with quarterly prizes of cash ranging from $2,000 to $40,000, vacation packages and luxury cars. The new program was announced in an employee memo by United Airlines President Scott Kirby on Friday.

However, the new prize program reportedly enraged United Airlines' employees as it implies that team efforts will not be recognized and only one employee determined by a drawing will receive the $100,000 prize. Non-winners will not receive even their prior bonuses.

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

"We will be reaching out to work groups across the company, and the changes we make will better reflect your feedback."

by RTT Staff Writer

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