Originally Posted by slowplay

You are looking at it correctly for a snapshot in time. During the term of any contract there is minimal impact (very minor profit sharing, premium pay, and potential operational disruption costs). During the negotiation for the next contract it is a big deal (our 1113 case, for example). Management showed total sick leave costs (total pilot pay hours) that were way out of sync with the rest of the industry. When sick leave was modified, the total costs went down over 25% year over year (close to industry), which wasn't because of the change in sick pay, but because the change in the number of pilots calling in sick. That change in sick pay cost every pilot that needed the old hours and full vice 75% pay. For those that used sick pay as "platinum" days, there was no change.

Did the change in pay cause pilots to get sick less or fly sick more? That's a different discussion, but our LTD rate is closer to industry norm now, which is an indicator of behavioral changes.

Sick leave is just one component of our compensation package, but it is costed just as medical benefits, retirement, pay, and rules/rigs are costed.