Pelican

I have a question for some of you that have been around for awhile longer than I have. When I was a student in the Navy (Mid 90s) I remember some of my instructors getting hired by UAL, AA, Delta and SWA. I can remember people almost apologizing or feeling sorry for the guys that got hired by SWA and FEDEX. Oh how times have changed.

My question is this: I know that then (mid 90s) that the SWA guys were not getting paid as much as the legacy guys, so did they (SWA) get pay raises since then or did everybody else just take it in the shorts over the past years and pass them going backwards? Anybody have a historical record of SWA pay?

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Don't talk to me like that @$$ face, I don't work for you yet

dojetdriver

SWA pay was "catching up" so to speak to that of the "legacies" pre-9/11. Then, everybody took cuts to below what SWA makes. Now SWA is the highest paid by default.

Sr. Barco

The short answer is yes and yes.

I'm too lazy to find the exact numbers but the pilots took a pay freeze in 1995 and received stock options in lieu of pay (that's a whole story in its own right). In 2002 the pilots signed a contract extension which included pay raises, more stock options and a stock option repair grant (long story). The pay raises phased in over several years but they were exactly equal to cost of living for the period 1995 to 2005. They were big raises but we were still below prevailing pay rates of the time.

Next came the pay cuts everywhere else while we've somehow managed to keep our payscale intact. That's essentially how it went down.

S.B.

skidmark

Good Post. I always wondered.

OscartheGrouch

SWA 12 year captain in 1994 approximately 127/hour.

2008 198/hour.

Let me just say that with our stock option program, those that got in early more than made up for any pay raises during the five years (1994-1999). We did get profitability based pay raises during that time period. Of course the individual timing of the execise of said stock options certainly made a difference in overall value received.

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Left seat and happy

Sr. Barco

Thanks for the numbers Oscar. I have a friend who is a 1986 hire. His peak earnings year was '01 or '02 I believe and he made $600,000 with his options. I wouldn't believe it had I not seen it myself. I'd say the options easily made up for the pay freeze but, as you know, some people have a beef with the plan. I don't and I didn't want to resurrect that argument.

--S.B.

Waldo11

Excuse my ignorance on this subject - the wife is in finance so I never pay too much attention (at least until she leaves me ) I was talking to a SWA FO on his second year and I think I heard that he isn't eligible for the stock options (or profit sharing?) yet. When do you get that benefit?

Sr. Barco

The stock option program is completely over. Depending which month he was hired he might not get profit sharing this year. Profit sharing is deposited into your account in September of the year after it was earned. I.E. 2007 profit sharing is deposited in September 2008. It is about 5% of your 2007 gross. Kind of meager this year.

S.B.

OscartheGrouch

The stock option program was quite beneficial to some. It was also a big gamble that could have been a mistake if not for the success of SWA as a whole in the 90's. No arguments from me. I just wish it had not been derailed by 9-11 (so all would have benefited) and then the stock price was hampered by subsequent multiple bankruptcies by our competitors.

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Left seat and happy