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United tried to replace bonuses with a $100000 lottery

United tried to replace bonuses with a $100000 lottery

As reported by the Chicago Business Journal, the program was introduced without warning by means of an internal memo penned by United Airlines president Scott Kirby, and it only took a few days of boisterous criticism by employees to roll the program back.

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

A new staff bonus reward program implemented by United Airlines was quickly canned after employees sharply criticized it.

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.

"As we look to continue improving, we took a step back and chose to replace the quarterly operational bonus and ideal attendance programs with an exciting new rewards program called "core4 Score Rewards", Kirby reportedly wrote in the memo.

Under the sidelined proposal, called "core4 Score Rewards", if quarterly performance goals were met, the company would draw 1,360 employee names for cash, vehicle and vacation prizes ranging from $2,000 to $40,000 in cash value. United Airlines did not immediately respond to a request for comment from Fortune.

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The airline previously would pay quarterly bonuses if employees met certain performance targets.

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.

"The employee group that would have been eligible for those bonuses was much larger" than that of the lottery system, Taylor Garland, spokeswoman for the Association of Flight Attendants, said in a phone interview.

"This is insulting and a poor idea, to put it mildly", one United pilot reportedly wrote on an internal employee website reviewed by Inc.

"I can't imagine driving the Mercedes into the employee lot while everyone around me that worked just as hard, or harder got nothing". It took so many years for people to feel good about what was happening. United Continental has about 88,000 employees.

"Since announcing our planned changes to the quarterly operations incentive program, we have listened carefully to the feedback and concerns you've expressed", Kirby wrote. On Monday, United is "pressing the pause button" as it considers employee feedback, Kirby said.

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