Originally Posted by
Scott Stoops
There is an enormous amount to lose. We have something they want. They are talking to us primarily because of that. To trade that leverage for 13% is using very questionable SA.
Scott
If I do some quick maths, at around $200,000 for the average UAL pilot (which will be close after the proposed pay raise), you are looking at a 15% raise over the current contract (16-3-2 vs. 3-3). That's about $60,000k per pilot, or approximately $720,000,000 over the life of the extension. That doesn't include the fact that there is an additional 15% added to our 16% BC fund.
Is that enough for the leverage we have? That's for the MEC and potentially us to decide. The MC and the negotiating committee think it is, and since they are the ones with the books open I tend to trust their judgement.
Could we do better by waiting for a full Section 6? Perhaps. But I'm looking around the room and seeing some pretty weak deals offered at SWA and DAL, and NO deal at UPS. All these airlines are negotiating during unheard of profits and operational performance. I just don't know if Section 6 is the open checkbook that some believe it will be. And God help us if the economy changes in the next 2-4 years while we are negotiating it. Then we just squandered $720,000,000+ of pilot money.
I can respect your opinion Scott, that we would be better served by waiting for Section 6. But I don't think those that would ultimately vote for the deal have "questionable SA". Just a different perspective and calculation of how much leverage we actually have. It's a basic risk reward calculation.