United Eliminates Quarterly Employee Bonuses, Spins It As A Positive

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Well, it’s not just frequent flyer devaluations that are spun as “enhancements.” Apparently the same is true of employee bonuses at United being eliminated in favor of a lottery system. The Chicago Business Journal reports that United President Scott Kirby has sent a memo to employees informing that their quarterly performance bonuses (of up to $300) are being replaced by a new program called “core4 Score Rewards.”

The new lottery system includes quarterly prize drawings, ranging “from $2,000 to $40,000, luxury cars, vacation packages, and a grand of prize of $100,000 awarded to one eligible employee per quarter.” This drawing will happen each quarter as long as United reaches at least one of their performance goals. While a $100,000 bonus might sound like a lot, keep in mind that United has about 88,000 employees, so this is very clearly a cost saving measure.

Here’s what Scott Kirby and a United spokesperson had to say about this change: