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View Poll Results: How do you want to furlough?
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Poll: Furlough Options

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Old 04-24-2020, 05:45 AM
  #41  
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Originally Posted by captive apple View Post
not scummy.
I’d image if any pilot group agrees to a lower min G they would tie it to a date or metric for snap back.
Agreeing to a lower line value but keeping the original pay rate is a much safer bet than agreeing to a cut in the rate, even with a snap back date. The company doesn’t really want inefficient pilots, they want cheap ones. When demand returns the company would want to do away with unproductive line values, they wouldn’t want to do away with lowered rates.
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Old 04-24-2020, 07:05 AM
  #42  
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Originally Posted by Flymeaway View Post
You need to keep in mind management's goals when considering this question. In a downturn they are bleeding money and that has to stop. A company cannot continue to lose money month after month. Management is responsible to stop that from happening. We, as labor, might want them to throw all that money our way, but that isn't their job. If they aren't bringing more money in than they are spending, they have to fix that immediately.

And there are two conflicting considerations when it comes to pilots. One is that in the long term, it's more cost effective to have fewer pilots working more hours. Each pilot costs overhead. Health insurance, parking pass, CQ, line checks, all the various administrative stuff. Additionally, if the number of block hours they can sell is less than the MMG of their pilots, then they're paying the difference with no benefit. This would lead them to immediately furlough as many pilots as necessary to have everyone flying 90-100 block per month.

On the other side, for every two pilots you furlough, you have to do downgrade training for one, plus rehire and retrain when you bring them back. That takes both time and money.

Normally MMG isn't a big pay issue because management wants everyone to fly as close to that 100 hour limit as possible. As long as you don't give up pay rates, any loss of MMG should be temporary or irrelevant. You do need to be careful that your pilots can still put food on the table with whatever MMG you agree to go down to though. Taking MMG down to 10 hours per month to keep everyone just means everyone starves. There is a happy medium. Obviously, at the regionals where pay rates are lower, you need a higher MMG to keep food on the table than you would at a major.
Airlines won't agree to reduced MMG long-term, due to per capita overhead costs as you mentioned. Best you can hope for is rules about no OT/premium pay with furloughs out.
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Old 04-24-2020, 02:37 PM
  #43  
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Originally Posted by rickair7777 View Post
Airlines won't agree to reduced MMG long-term, due to per capita overhead costs as you mentioned. Best you can hope for is rules about no OT/premium pay with furloughs out.
Reducing MMG can significantly reduce labor costs to the company. There's a cost of overhead+unused MMG vs cost of downgrade+retraining. There's an argument to be made that if the expected demand reduction isn't expected to be super long term, then reducing MMG a bit can tilt that equation towards keeping more pilots. If it is going to be very long term, then the company will furlough and the reduced MMG may be a factor for reserves, so a month to month or snapback timeline is appropriate.
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Old 04-25-2020, 05:57 PM
  #44  
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Originally Posted by Flymeaway View Post
Reducing MMG can significantly reduce labor costs to the company. There's a cost of overhead+unused MMG vs cost of downgrade+retraining. There's an argument to be made that if the expected demand reduction isn't expected to be super long term, then reducing MMG a bit can tilt that equation towards keeping more pilots. If it is going to be very long term, then the company will furlough and the reduced MMG may be a factor for reserves, so a month to month or snapback timeline is appropriate.
Short-term, no not across the board. They can't force it until 01 Oct., and even then it depends on contracts and BK judges. Some folks are taking voluntary MMG reductions (incentive lines, etc).

Mid-term, it might be a consideration if they are afraid it will cost more to furlough/recall if demand rebounds relatively soon (like 2021 vice 2025). However... it's going to be a very hard sell to any pilot who thinks he's furlough proof. The top 70%-ish probably have no interest in giving up a huge amount of pay for years just to keep juniors marginally employed... and you'd need 50%+1 vote to get it approved (few or zero unions still allow MEC's to sign off on pay cuts without putting it to the membership) And employers cannot force that on any union pilot group. Maybe OO, but it could be fought in court as a class-action (and would be IMO if you forced a pay cut on the top 30%).

Long-term (ie airlines think furloughs would be out for 2-3 years+) it's not happening. they will not carry the overhead even if unions agreed to it.
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Old 04-26-2020, 10:01 AM
  #45  
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If y’all are in 11 proceedings by November it will be different this time around or at least it can be. This is an election year. The incumbent needs the rust belt very badly. You all are union employees use your voice. This will all come down to public perception and who you can make out to be the bad guy. If you all can master that game you will have the upper hand in bankruptcy and possible “Re”regulation of the Airline industry. But you need to make this about labor and golden parachutes.
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Old 04-26-2020, 10:47 AM
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Originally Posted by mkitrn View Post
If y’all are in 11 proceedings by November it will be different this time around or at least it can be. This is an election year. The incumbent needs the rust belt very badly. You all are union employees use your voice. This will all come down to public perception and who you can make out to be the bad guy. If you all can master that game you will have the upper hand in bankruptcy and possible “Re”regulation of the Airline industry. But you need to make this about labor and golden parachutes.
I doubt anybody will file until after the election (IIRC they can't until 01 Oct anyway).

Probably best to see which way the winds are blowing before they show their hand. An incumbent in time of crisis typically wins, but they might as well wait a month and be sure.
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Old 04-26-2020, 06:23 PM
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Originally Posted by rickair7777 View Post
I doubt anybody will file until after the election (IIRC they can't until 01 Oct anyway).

Probably best to see which way the winds are blowing before they show their hand. An incumbent in time of crisis typically wins, but they might as well wait a month and be sure.
i hope you are right and they have time which means it may not be as dire as it appears but it may come down that many airlines have no choice but to file for protection on October 1...
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