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?
Uhhhh, because they have more respect for their profession/dignity than to accept "cost neutral" offers during the good times.
Next question- "Yeah? How's that working out for them?
Answer- not too well for them, but with our profit sharing, we will do better without accepting the QOL concessions for an 8% pay raise and reintroducing labor risk to our stock valuation.