Originally Posted by
Denny Crane
When you are talking about trading PS for a higher raise, I agree with you but in the instance we are talking about, we do not lose the advantage. We would be getting a 5% raise that will always be there regardless of what other companies do. And we would build on top of that.
Denny
The logic is the same though on getting raises. The only difference is that the amount is smaller. The raise will always be there if we move PS to pay rates too, but it won't be a negotiating advantage the next round of negotiations just like this wouldn't be.
To put another way, when we go before the NMB or even general perception, they look at our pay rates compared to our peers. If our base pay is lower it is easier to go for an increase than if it has parity. If we set it up so a lower base pay gives us the same take home, it is easier for us to use other carriers pay based negotiations to get more money in our pockets. If we put it in hourly rates we are not getting as much advantage when United later increases their rates above ours.
EDIT: I missed the colored part...
Of course the company costs it in dollars. I think that irrelevant. I get what you are suggesting but don't agree with it. What you are saying is there is finite pot of money and it only depends on how we split it up. I think my way makes that pot bigger. Essentially and example of what you are saying is if we get improvements in Deadheading, that will mean a lower pay raise because it's all costed out in money and there is only so much.
That will be the company's goal, yes. The cost out the contract and that costs them money if it's a DHD pay provision. But it's even easier when we talk about direct pay increases. In either case, when it is being negotiated, the company will cost the amount out. So even ignoring other contract provisions, they don't see DC and base pay amounts as a percentage, they see them as dollars over the whole pilot group. I do not agree that the choice is between 5% to DC or 5% base pay so base pay makes the pot larger.