I've crunched some numbers about our lack of pay increases for inflation and here are the results.
Assumptions:
Starting with 2yr Captain pay from Oct2001
Assumes no upgrade to check airman
Assumes nomral longevity raises
Average of 85 hours per month
Assumes no vacation/PTO/UTO
Does not include profit sharing, 401K matching, CSPP increasings
Assume pay raise occurs on 1Jan every year based on previous year inflation
Does not include perdiem or perdiem increases
No cost of living raise 1Jan02 as pay scale was started only 3 months prior
Does not include any check airman 10percent override
Using the inflation rate below from
http://inflationdata.com
2003 1.59%
2004 2.27%
2005 2.68% so far this year
2006 3.25% best guess
Here is what I get
Year 2003 2004 2005 2006
Current pay (monthly) $10685 $10921 $11164 $11268
pay adj for Inflation $10855 $11346 $11910 $12411
Annual pay lost due to
no cost of living raise $2039 $5106 $8949 $13721
The net result is that by the end of 2006 this typical Capt has lost $29,815.56! An FO starting at year one with no upgrades would have lost $16,689.89, and that ain't chump change either! The total inflation rate from Oct01 thru Apr05 is 9.51% That means we have already lost 10% of our buying power due to inflation! How far will this go? In 5 more years it will be well over a 20% loss in buying power!
The total income lost after 10 years is staggering due to compounding! That means that the employees (us) are paying for jetBlue's growth, yet we get nothing in return! No stock, no additional pay, not even a promise to fix it! Not once have they said "You can expect a raise if we get XXX profit margin." I think (as well as others) is that JB is building the company on the back of the employee. Then consdier that these loses don't even include the 401K matching and CSPP that add additional monies lost! It is even larger if you work 90-95 hours per month. I am ignoring profit sharing as it is not a sure thing. It won't be long until compounding raises the annual pay lost due to inflation is many time the size of our annual profit sharing (which by the way goes into your 401K and you can't use it to pay the bills, which keep going up!)
The format of this posting doesn't do justice to the spreadsheet that really make the problem show. I hope this makes sense to everyone. We need to really push this in the upcoming survey and really express our dissatisfaction. Good luck to us all.
Just my opinion....
FNG
ps. I have made some updates to the numbers (error corrections) and will try to attached the file soon. thx