NEW YORK (Reuters) – United Airlines is discontinuing proposed changes to its performance incentive program, the carrier announced on Monday, after employees expressed outrage at the elimination of regular bonuses.
United President Scott Kirby wrote in a memo to employees that the carrier was “pressing the pause button” on unpopular changes to its merit bonus system that would scrap quarterly performance bonuses in favor of lottery drawings for cash prizes, luxury cars and vacation packages.
Intention - Program - Changes - Kirby - Memo
“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 the memo. “So, we are pressing the pause button on these changes to review your feedback and consider the right way to move ahead.”
Kirby’s decision comes at a particularly challenging time for United Airlines as the carrier grapples to reassure shareholders and appease employees amid lagging financial performance compared with rivals’ and demands for better wages and benefits.
United - Blowback - Investors - Decision - Capacity
United has faced blowback from investors over its decision to ramp up capacity aggressively on its domestic operations. Employee annoyance at management has festered in recent months over a decision not to award one-time cash bonuses in the wake of lucrative changes...
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