Easter Meltdown
04-07-2021 | 02:10 PM
#191
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Joined: Jun 2015
Posts: 3,361
Likes: 58
04-07-2021 | 02:10 PM
#192
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Joined: Apr 2018
Posts: 3,576
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I think the flaw in sailings thoughts is time and patten bargaining. At first blush what he said is true. But, after we monitized PS...the other carriers came along and demanded Delta or better rates....so they capitalized on our monitization. So, now fast forward a coupla contracts with pattern bargaining and Delta pay will equal AA and UAL. IOW...other carriers reap the rewards of us monetizing the PS. If your time frame is 1 possibly 2contracts....you are prolly money ahead on the switch....if you have multiple contracts I'd stall with the current PS. The bigger negotiating gambit is who( which carrier) settles first...in an improving economy..I would rather not be first
Additionally...straight line pay rates shine like a beacon and even the most inept Wall Street guy can parse the cost.....PS is much harder to cost out consequently less damaging to stock price.....we may not care....but the exes do
Additionally...straight line pay rates shine like a beacon and even the most inept Wall Street guy can parse the cost.....PS is much harder to cost out consequently less damaging to stock price.....we may not care....but the exes do
04-07-2021 | 02:52 PM
#193
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Joined: Sep 2014
Posts: 5,127
Likes: 89
Profit sharing is about the only tool I’ve seen have any influence on a disgruntled pilot...and make him or her watch the fuel burn (if it’s not a go-home leg) and go say goodbye to our HVCs to make em’ feel special. I look forward to a rapid return of profits.
04-07-2021 | 04:11 PM
#196
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Joined: Feb 2008
Posts: 20,868
Likes: 187
The industry standard was set by those rates and our subsequent contact.
04-07-2021 | 04:15 PM
#197
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Joined: Feb 2008
Posts: 20,868
Likes: 187
I think the flaw in sailings thoughts is time and patten bargaining. At first blush what he said is true. But, after we monitized PS...the other carriers came along and demanded Delta or better rates....so they capitalized on our monitization. So, now fast forward a coupla contracts with pattern bargaining and Delta pay will equal AA and UAL. IOW...other carriers reap the rewards of us monetizing the PS. If your time frame is 1 possibly 2contracts....you are prolly money ahead on the switch....if you have multiple contracts I'd stall with the current PS. The bigger negotiating gambit is who( which carrier) settles first...in an improving economy..I would rather not be first
Additionally...straight line pay rates shine like a beacon and even the most inept Wall Street guy can parse the cost.....PS is much harder to cost out consequently less damaging to stock price.....we may not care....but the exes do
Additionally...straight line pay rates shine like a beacon and even the most inept Wall Street guy can parse the cost.....PS is much harder to cost out consequently less damaging to stock price.....we may not care....but the exes do
04-07-2021 | 05:00 PM
#198
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Joined: Dec 2007
Posts: 7,252
Likes: 95
From: DAL 330
The reduction in profit sharing that was monetized in the 2012 contract was about 1.9% in return for an additional 2% in pay rates. Those rates became the cornerstone of almost every contract at the major airlines moving forward and that 2% has compounded with subsequent raises to about 3%. I guess the question becomes would we have the exact same rates today or would they be 3% lower had we not monetized that money. The one thing I do know for sure is I got paid that 3% last year and profit sharing was zero. I suspect our current rates would in fact be lower had we not done that as raising rates across the industry is always a stepping stone approach across the major airlines. Our 2012 contract broke open a long term stagnation airline managements managed to hold onto far longer than they should have been able to maintain.
The monetizing of PS was a mistake back then and will always be a mistake. Pay rates quickly normalize - you even said it above "Those rates became the cornerstone of almost every contract at the major airlines moving forward and that 2% has compounded with subsequent raises to about 3%."
Your point seems to imply that only DALPA can raise the bar for industry rates. Are you implying that no other Pilot group can set higher rates that can, let me be sure I use your exact phrase here " become the cornerstone of almost every contract at the major airlines moving forward."
Maybe since UAL opened a year ahead of us we can snap up to their rates this time around.
Trading PS for a temporary pay bump that will quickly get normalized into industry standard rates is a fools game.
Scoop
Last edited by Scoop; 04-08-2021 at 05:02 AM.
04-07-2021 | 05:04 PM
#199
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Joined: Sep 2020
Posts: 428
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While we're comparing strategies during the pandemic not sure I'd want to trade places with United pilots. United flies about 250 more RJ's than we do (DL 344, UAL 599, AAL 560) while we brought the 717 and A220s into the mainline fleet. That's quite a few mainline jobs. When I look around at the "partnerships" at AAL with JetBlue and Alaska, I think we're in a pretty good spot as a pilot group. We also instantly add near 30% capacity when the middle seat block goes away. We'll be fine IMO.
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