Airlines' efforts to slash workers' wages and benefits have run into trouble at US Airways. Flight attendants there are considering striking or other actions to disrupt the airline's operations. Already, some passengers at the airline's Philadelphia hub have experienced two-hour waits for their luggage. So management has come up with an interesting carrot. But is it worth it? Marketplace's Savvy Traveler, Rudy Maxa, explains.

Is it just me, or do you think it's odd to bribe your employees to do their jobs? US Airways CEO Bruce Lakefield just announced that employees who complete all their shifts between Thanksgiving and January tenth will receive two standby tickets on US Airways. Plus, they'll be entered in a lottery for more tickets, computers, a cruise, and other prizes.

That's one way to curb sick days and perhaps "incentivize" employees to put off striking for a few weeks. But I find the short-term nature of the offer strange. Incentives should fundamentally change a company for the better over a long period of time.

Take Continental Airlines. When Gordon Bethune took over the airline ten years ago, it was three weeks away from not meeting its payroll. Staff morale was at rock bottom after three years of wage cuts and staff layoffs.

In his first week, Bethune took the locks off the doors in executive suites and introduced casual Fridays. He convinced line employees that everyone lost when the airline was late--customers got cranky and employees got home late.

Then he said if the airline made money, everyone from the airplane cleaners to vice presidents would get bonuses. If the airline could post better monthly, on-time numbers than any of its competitors--which it soon did--every employee got an extra $100. A year's perfect attendance record got you a new Ford Explorer.

Now that's a carrot.

See, Bethune stressed teamwork. He designed a reward system that recognized everyone's efforts. And performance, such as on-time flying, was measured against competitors. Continental became a great success story.

Today, US Airways faces high fuel prices and low-fare carriers nipping at its hubs. To turn things around and recapture the loyalty and enthusiams of its workers, it'll take more than standby tickes.

From St. Paul, I'm Rudy Maxa for Marketplace.

December 01, 2004