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Kate Gebo Letter To MA - 5.4.20 PDF
Kate Gebo Letter To MA - 5.4.20 PDF
M&A employees:
On Friday, Oscar and Scott shared a number of important company updates regarding our first
quarter financial results, the demand outlook and the actions we are taking to protect the long-
term future of United. If you weren’t able to tune in for the live town hall, I hope you’ll take some
time to watch the full video or the highlights and take a look at the infographic, which shows the
many ways United is working to save money.
The reality we are faced with, especially heading into what would normally be our busiest time
of year, is daunting to say the least. We’ve shared repeatedly that while the CARES Act
assistance will help us protect jobs through September 30, it only covers a part of our payroll
costs. Governmental restrictions on travel, stay-at-home orders, and the lack of a medical
solution for COVID-19 have brought bookings and demand for travel basically to zero. This is
forcing us to come to terms with the fact that our airline – and our entire workforce – will have to
be smaller than it is today, and it’s requiring us to continue taking decisive actions.
Last week I shared that our Annual Incentive Program (AIP) and profit sharing program are
extremely unlikely to pay out for 2020. Today I’ll provide updates on a few additional topics:
We will be implementing an unpaid time off program for domestic M&A employees to align
with less flying, fewer customers, and less working time for frontline employees. Effective
between May 16 and September 30, domestic M&A employees will be required to take 20
unpaid days off. For non-operational M&A employees, a four-day work week will be
implemented with Fridays being the assumed day off. Employees whose work doesn’t allow for
a day off every Friday should work with their managers to schedule a different day each week.
Operational M&A employees will be provided a new work schedule. Employees who are already
on a reduced-schedule COLA will continue for their designated election period and will be
credited for days taken between late March and May 15. (Additional information will be provided
in a Q&A.)
Please work with your manager to coordinate time off with your team members to make sure the
business is not impacted. We’ll be asking you to record vacation time in TimeTracker and will
monitor balances each payroll period and share reports with every department leader.
I recognize that it seems strange to consider taking days off when many of us are under shelter-
in-place orders and most would prefer to wait until we can get out with friends and family or
travel the world. But especially now, unplugging from work is important.
Guidance on U.S. M&A reductions and the upcoming Voluntary Separation Program
We have to acknowledge that there will be serious consequences to our company if we don’t
continue to take strong and decisive action, which includes making decisions that none of us
ever wanted or expected to make. At this point, we’re planning for an M&A population that will
be at least 30% smaller than it is today, with some work groups impacted more significantly
than others. Affected employees will be notified in mid to late July for an October 1 effective
date.
Given the upcoming reductions, I have to ask each of you to seriously consider if choosing a
voluntary separation with a robust benefits package might be right for you. The details of the
program are being finalized and will be announced in mid-May for the domestic M&A team. If
you participate in the Voluntary Separation Program, you will have the opportunity to maintain
active pass travel privileges and medical benefits for an extended period of time, along with
some continuation of pay.
I know there is a lot to consider in this letter, and it presents a number of significant changes in
a direction that’s much different than what we’ve come to expect as members of this United
family. Some might even say these changes don’t represent core4. Personally, though, I
believe that being transparent with you about the reality ahead of us, and taking steps to make
United as strong as possible as we fight our way through this crisis, is the very essence of the
core4.
Thank you, again, for all you continue to do as we navigate this extremely difficult time. Through
the challenges and uncertainty, you have all continued to take care of our customers and each
other. For that, I am so grateful.
Kate