Do you really think we are seeing capitalism at work? No, we are seeing a distorted system. The majors get the big bucks, above market levels because of the strong unions. (Although the market level is rising quickly and may actually exceed the wages in a year or 2.)
Regional pilots will do anything to get their time to get a shot with the majors and the above market salaries; the carrots. The majors and the regionals know this. They set the market and are very careful not to compete with salary or benefits. The regionals got together and decided what the pay would be. For the last 25 years they have slowly lowered the qualifications to keep the pool of pilots intact. By changing the qualifications they controlled the supply. They could set the wages. They were all in lockstep.
In late 2007 the qualifications required hit the bottom. They could not go below the 200 hours and a pilot shortage began. Then age 60 ended but the shortage continued. Then in early 2008 oil prices skyrocketed. In April 08 ATA went under and pilots were getting DC-10 captain jobs over the phone. Other airlines went out of business a few days later and suddenly there was an overabundance of pilots. One pilot I know had 5 job offers and before class started with all 5 airlines, they all started to furlough.
Then from 2008 to 2014 there was not much hiring and thousands were on furlough. Recalls started and now we are again at the shortage point. Shortage only at this wage level. The RAA manipulation of the pilot market has resulted in no pilots becoming trained the last 7 years. Who can live on 20k a year and pay his student loans. The 20k figure is a distortion too because the pay in training is lower. The first year is closer to 18.5k.
But things are not going to change. Market rate for a regional FO now is 40 to 45k and for a Captain it is 100k+. Yet the pilots and the unions are still thinking 20 and 55k. They are looking at a 15% raise when negotiating and they should be thinking 100%. We are all obedient fellows.
The definition of regional pilot in my dictionary is "a type of sheep in the form of a human. Quiet and fed with grass." I am a sheep.
If the pilots at Republic and Gojet would have some balls and stop the breach of the "status quo" with first year bonus' you would see some big pay raises quickly. Stop the bonus' and you will all see a huge raise. Not just the bottom 4%. No bonus' No bonus' No bonus' should be the chant to mean that you all deserve a raise. The market rate for a regional captain is 100k+, demand it and you will get it.
It is not just a "status quo" issue. Every airline with a contract has a pay scale. An airline cannot pay a pilot outside of the contract - period. I have heard all the theories that people use to say that the company is free to pay these bonus' and they are all false. The company cannot have a separate pay scale for pilots they want to hire, it would make the contract worthless. Stop the bonus' and you will get real pay increases.
I'm not faulting any new hire pilot for wanting or taking a bonus, you would be crazy for not wanting and taking one. But you would be better making 20k a year more for the next 20 years than just getting that 10k bonus.
If anyone wants to debate me about the legality of these bonus' I would welcome the challenge. We could start a separate thread. Case law, law review articles, anything relevant. (Of course a union is free to agree to the company giving the bonus', but the discussion assumes the union was not that stupid.)
I know my post exceeds the 140 characters so it probably went unread by 99% of the readers, but, to sum things up, in this market you are worth double what you are being paid and if you stop the bonus' and let the market rule you will get it.