Originally Posted by
Carl Spackler
And since you've mentioned the fact that we'll have two more pay raises between now and the end of this contract, that will make restoration to C2K levels less than 60%...not more. You say I conveniently forgot to mention this. Not at all. But since you mention it, restoration to C2K levels from the end of our current contract will be even less than 60% bumps in pay.
My apologies to those who have already seen this the several times I've previously posted it (and apologies to the bankers that this might make uncomfortable
), but I think the following could help in answering the above question:
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Perspective on Pay
Here’s a little perspective on our pay rates using October 1, 1986 and January 1, 2000 (1996 concessionary contract – preC2K) rates:
Let’s take a look at some examples of these past rates, and see what it would take in 2012 for true restoration of the buying power they provided:
(First we’ll look at some MD-88 Captain 12 year rates as a basis for comparison, and then we’ll look at some 767-300 Captain 12 year rates for the same comparisons.)
October 1, 1986 MD-88 Captain (12 yr) Rate: $135.53
January 1, 2000 MD-88 Captain (12 yr) Rate (pre-C2K): $175.00
January 1, 2012 MD-88 Captain (12 yr) Rate: $167.68
Adjusted for inflation to 2012 – (source:
Tom’s Inflation Calculator)
The 1986 rate of $135.53 would be $280.13 in 2012.
The 2000 (pre-C2K) rate of $175.00 would be $233.58 in 2012.
To bring the October 1, 1986 rate to its inflation-adjusted value of $280.13 in 2012, would require a
67% increase to the current contract’s 2012 MD-88 Captain (12 yr) rate of $167.68.
To bring the January 1, 2000 (pre-C2K) rate to its inflation-adjusted value of $233.58 in 2012, would require a
33.5% increase to the current contract’s 2012 MD-88 Captain (12 yr) rate of $167.68.
In other words, our new 2012 contract would need a 33.5% increase to this rate just to bring its buying power to the same level as the 1996 concessionary contract rate!
Now for the 767-300 –
October 1, 1986 767-300 Captain (12 yr) Rate: $158.21
January 1, 2000 767-300 Captain (12 yr) Rate (pre-C2K): $203.25
January 1, 2012 767-300 Captain (12 yr) Rate: $188.96
Adjusted for inflation to 2012 – (source:
Tom’s Inflation Calculator)
The 1986 rate of $158.21 would be $327.01 in 2012.
The 2000 rate of $203.25 would be $271.29 in 2012.
To bring the October 1, 1986 rate to its inflation-adjusted value of $327.01 in 2012, would require a
73% increase to the current contract’s 2012 767-300 Captain (12 yr) rate of $188.96.
To bring the January 1, 2000 (pre-C2K) rate to its inflation-adjusted value of $271.29 in 2012, would require a
43.5% increase to the current contract‘s 2012 767-300 Captain (12 yr) rate of $188.96.
In other words, our new 2012 contract would need a 43.5% increase to this rate just to bring its buying power to the same level as the 1996 concessionary contract rate!
*** Obviously, C2K buying power restoration would require substantially greater percentage increases than the ones shown above. ***