Old 07-23-2014 | 06:41 AM
  #20  
RH1228
Line Holder
 
Joined: Jan 2009
Posts: 69
Likes: 0
From: Property Manager
Default

Originally Posted by griff312
They will ABSOLUTELY spend tons of money on initial new hires, all day long before they EVER raise pay rates for the rest. They can spin these expenses to their stockholders, ect. as controllable short term, temporary cost. But pay raises are long term cost. You're already seeing them offer $5K sign on bonuses, and $10K scholarships to new hires, but not offering a single penny to those already on property beyond 1st year pay. They not only have a "hiring" problem, but more importantly, a "retention" problem. If they could offer a new person an additional $15K (in bonuses), on top of their $25K 1st yr salary, to get them in the door and avoid across the board raises, they'd do whatever they have to. Management's problem is: any raise, be it just for first year pay, or all FO's, or the whole pilot group has to be approved in an LOA by the pilot's collective bargaining association. Their union is not likely to allow a pay raise for a small sect of the group, while the whole group is grossly underpaid. Otherwise, that allows the company to fix a small part of their own mess, at the rest of the pilot groups expense. So, since new hires are not part of the union, nor under that airline's CBA, they can be offered anything possible by the company, without the rest of the pilot group being entitled to it. The LAST thing any airline managers want to do, is to implement pay raises. Those are permanent costs, that they will not be able to take back for a decade, if ever.
This is very straight forward. Yet it seems many people don't understand. For the people who think wages will magically be increased across the board go to your local community college and take a few basic business classes. In the current environment an airline will go out of business before any significant wage increase is implemented.
Reply