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United Backtracks, 'Pressing the Pause Button' on Bonus Lottery

March 05, 2018
•
2 min read
United 777-300ER CEO Oscar Munoz
United Backtracks, 'Pressing the Pause Button' on Bonus Lottery
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On Friday, United announced to its employees that it would be changing the quarterly bonus structure. Rather than most United employees earning up to $375 per quarter when the airline hit performance metrics, the new plan would enter all qualifying United employees who had perfect attendance that quarter into a lottery. The top prize would be $100,000 with 10 secondary prizes of either $40,000 cash or a Mercedes-Benz C-Class and 1,350 smaller prizes.

While the airline's management said the "new program will build excitement and a sense of accomplishment," we crunched the numbers to figure out that this was a move to slash employee bonuses by tens of millions of dollars per year.

And, the backlash was immediate. United employees vented their rage at management in internal United forums. One flight attendant even started a Change.Org petition. The petition received more than 1,100 signatures, but the flight attendant was convinced to shut it down after being "advised by management that having that petition was against our work guidelines and I should take it down."

After the VP of Human Resources blundered the initial response, it seems that the airline's management is finally listening to the employee backlash. After receiving nearly 3,000 comments (2,997 as of 2:00pm Eastern), the company is finally "pressing the pause button on these changes." United sent out the following email to its employees around 1:30pm Eastern on Monday:



Dear United colleagues,
Since announcing our planned changes to the quarterly operations incentive program, we have listened carefully to the feedback and concerns you've expressed.
Our intention was to introduce a better, more exciting program, but we misjudged how these changes would be received by many of you.
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.
Appreciatively,

Scott

While it took a few days to get there, we applaud United management for listening to its employees. If it hopes to restructure the bonus plan, hopefully management will work with its employees to find an incentive program that's mutually acceptable.

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.