Pay banding perspective from same Council 20 update:
“Pay Banding”. This is the “banding” of several categories’ pay rates into common bands or groupings. For example, UAL negotiated this type of scheme into their joint contract with the top band consisting of the 767-400 up through the 747-400 (same pay rates). Although not required, banding is generally proposed to come with extended position “freezes” (seat lock). The benefit, depending upon the design of course, to the Company, is reduced training due to the loss of pay rate differential incentive, and extended freezes.
§ Perspective: The downside to Pay Banding is position bidding stagnation, which is exacerbated by long potential freezes, for all, including many who are late in their careers with a limited number of moves remaining after waiting 10-15 years for upward movement to finally begin again. While there may be ways to carefully transition to pay banding and offset the negative consequences, they may likely include parameters about which the Company has little interest.