CBAs that don’t exceed annual inflation…

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07-06-2022, 07:01 AM

#11

rickair7777

Prime Minister/Moderator

Joined APC: Jan 2006

Position: Engines Turn Or People Swim

Posts: 39,273

Quote:

Originally Posted by Excargodog

One can argue WHICH inflation metric is appropriate, but it is difficult to argue that not incorporating ANY inflation based metric is appropriate, if only because it incentivizes management to draw out renegotiating CBAs as long as possible. Even if there is a look back provision and that provision covers the whole period back to the amendable date (as opposed to something like the current UA six month look back, management STILL benefits because they wind up paying those old debts in newer (devalued) dollars.

Absent SOME inflation offset (or the exceedingly rare possibility of deflation), management can ONLY benefit by dragging out negotiations.

Yes, they always benefit by stalling.

Quote:

Originally Posted by Excargodog

And while we are on the subject of negotiations, it’s time to get rid of the idea some people have that negotiations are always a compromise (What are we willing to give up to get… x.). They are NOT. When the leverage was on THEIR side, management was quite willing to use it to eliminate pension benefits and other things won through decades of collective bargaining. There should be ABSOLUTELY no reluctance on the part of pilot union negotiators to expect and DEMAND real gains in both inflation adjusted pay AS WELL AS quality of life work rules now that the leverage is disproportionately on the pilot side.

You can of course negotiate almost anything, the question is would it be worth the cost? I'd say if you're going to sign a contract longer than 3-4 years, then maybe so since the future is unpredictable. But for the shorter contracts which seem prevalent now you mostly know the climate you're operating in and can simply account for that in the base rates (baring black swans of course). In a good climate (today) you can expect a big DOS base bump plus a couple smaller bumps at two-year intervals... the later is your estimated inflation adjustment.

Quote:

Originally Posted by Excargodog

What’s sauce for the goose is sauce for the friggin’ gander.

That's not how it works, "fair" is irrelevant.

07-06-2022, 07:33 AM

#12

Excargodog

Perennial Reserve

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Joined APC: Jan 2018

Posts: 11,501

Quote:

Originally Posted by rickair7777

That's not how it works, "fair" is irrelevant.

Absolutely correct. It wasn’t “fair” when management reneged on decades of promises to strip long-promised pensions from pilots in bankruptcy and concessionary contracts. It isn’t “fair” for pilots to use the combination of the COVID incentivized early retirements and a long-standing supply chain problem with ATP numbers to extort record ‘gives’ from the airlines, but fair is irrelevant.

What’s sauce for the goos IS sauce for the gander and right now the pilots unions have management by the short and curlies. If the pilot groups don’t use that leverage to make substantial gains, then more fools us.