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Old 06-30-2014 | 01:48 PM
  #161457  
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Bucking Bar
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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
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Originally Posted by alfaromeo
Without any comment on the wisdom of pay banding, at least the discussion should center around the facts rather than wild speculation.

If you want to figure out the productivity gains from pay banding you would start with the average number of non-new hire pilots that are in the upgrade training pipeline (from initial academics through IOE completion) on any given day. Continuing qualification training would not count as that would stay unchanged with pay banding.

You would use a daily average because we have training starting and ending each day of the month and a variable amount of crews are in training in any one day. You would exclude new hires because no matter what the pay structure is, you will have to give them training when they get hired.

My guess is the daily average is in the 100-150 pilot range. It was lower before but training has been going up lately. Maybe someone with training center connections has a better number.

For the sake of discussion, let's use 150. If you go to pay banding, you will not be able to eliminate all training, because pilots will still jump between bands and from first officer to Captain. Let's estimate that we would save 1/3 of training by going to pay banding. That means you would save on average 50 pilots per year from pay banding.

If you try to say it's 1800 pilots, that means you would estimate that there are 5400 pilots in training at any one time, again assuming you save 1/3 of the training events. Even if you predict you will save 100% of training events (an impossibility unless you lock every new hire into one seat, including Captain seats, and keep them there until retirement) you would need to average 1800 pilots a day in training to save 1800 jobs. In other words, every Delta pilot would change jobs in 12 months or less. That does not seem plausible.

Attack away, but at least attack with facts not wild hyperbole.
Thank you for popping up on frequency for this topic. My concerns are more along the lines of:
  • How would pay banding effect us in a category and status merger?
  • What are the effects on top line scope of pay banding (JV negotiations)?
  • What are the effects on small jet (permitted flying arrangements) as a result of pay banding?
  • What is our competitive environment? What are other airlines doing?
IMHO now may be the time to get the maximum benefit from this kind of change because we know management is having a training problem. During a down turn pay banding delivers nothing.

What are your preliminary thoughts on pay banding's effects on mergers and scope negotiations? If we combined pay banding with scope recapture, I could be sold on the idea.

Back of the napkin math; I figure 2% or 3% could be recaptured from pilot pay, DGS and Delta resources for this change. That's less than my cable TV bill in after-tax money. If there is an extrinsic virtue here, it needs to be considered.