Originally Posted by
slowplay
This is from UBS:
The ugly: big labor ask coming
SWAPA (pilots union) leadership sees its members as ~12% underpaid relative to current DAL/AAL contracts, and ~20% underpaid relative to tentative agreement (TA) with DAL pilots that (if ratified) would raise base wage rates but scale back profit sharing. SWAPA leadership sees a 15% base wage increase with modestly higher profit-sharing as minimum to get a deal done, and believes management's expectation for an overall cost-neutral labor deal is unrealistic. Remuneration appears to be only
major sticking point with work-rules and growth appearing to be of secondary concern.
During C2012 many on this board were advocating waiting for SWAPA. They've waited 3 years and are already 12% behind us in total comp. FedEx and UPS, the other two carriers that have been consistently profitable and in negotiations haven't raised the bar either.
Why are they so delayed?
How many on this board were advocates for c2012 stating this gets us to negotiations during the upcoming sweet spot in 2015, where we will make even greater gains? Hmmm. Or said SWA wasn't part of the 'me too' clause because they weren't our peers?