On Monday United Airlines President Scott Kirby announced that they would pause the plan to replace quarterly bonuses with a much less expensive lottery program.
Last Friday they had come up with the lottery that would save the carrier perhaps $30 million per year, replacing bonuses of up to $300 per quarter per employee with big prizes given to just 1-2% of employees. And the backlash was brutal.
Much of the media reported Kirby’s letter as saying United was ‘reversing course’. I suggested that instead they’d be talking to employees about what the new system would look like, but there would be a new system. Employees wouldn’t keep their quarterly performance bonuses that they have today.
United’s CEO has just followed up with a letter of his own to employees (HT: @BrianSumers) where he makes the same point.
Since the first quarter ends in a few weeks, they’re going to pay out the performance bonuses that United employees have expected to see at the end of March. That’s reassuring — that United isn’t going to retroactively pull the rug out from under everyone.
However Munoz says “we will introduce a new plan as soon as possible” in its place. That new plan will be announced after they’ve spent time listening to employees.
Here’s Munoz’s note: