Quote:
Originally Posted by C2078
Why do you believe FDX should have an industry leading contract over DAL or UAL? Do you consider yourself better than them? Is it an entitlement issue? Do you fly better than them? Do you believe a pilot blocking 300-400 hours a year is better than the pilot blocking 800 hours? Again, the entitlement bleeds through multiple purple folks. Is the vast majority of the membership like this? Do most FDX pilots think “We are FDX pilots, we deserve industry leading rules?”
I'm breaking my rule of debating with strangers on the internet, but this comment has been in the back of my mind and I think it would be good for us as professional pilots to debate what I'm about to write.
To answer your question, I would say with a resounding yes that FDX and UPS pilots deserve industry leading compensation. I don't mean to come off as being arrogant, but I think I can use objective data to support my claim.
Firstly, let's look at the relationship between labor and the employer. Our employers compensate us to execute our jobs in order to garner revenue. To put it in other terms, think of us as soldiers that our employers send off to "war" to bring back dollars. For compensation, we agree to sacrifice our time, health, and sometimes our families. But instead of fighting for country, our objective is to make very rich men richer; that's it! Now, employers will play off of emotions and tell their employees that they are "saving the world" (in the case of Fed Ex) but at the end of the day, our management is using us to make themselves, the board, and the shareholders richer. I love flying airplanes, but am not afraid to call a spade a spade; we are cogs for rich men to use at their disposal. As pilots we are a very "unique" form of labor in that there are very high barriers to entry which means that very few folks actually qualify for this profession -- this is why Airlines have been lobbying to congress for a reduction in standards; if they have a bigger labor pool they can all race to the bottom in terms of providing our very specialized labor force with fair compensation.
Let's look at revenue generation to support my claim as to why FDX and UPS pilots deserve the most compensation. I know folks talk about a company's profitability, but in terms of a labor discussion I want to focus on revenue. Revenue is what the labor force generates for the company. Using my analogy above as being good little soldiers, our objective is to bring in revenue for the company. In terms of a cargo pilot, no revenue is generated for the company unless the crew moves a loaded plane from point A to point B. I'd argue that profitability is the focus and measure of management. It is management's job to extract as much profit from the revenue generated by their labor force. Management does this through their business strategy. Their strategy consists of market focus, capital investments, contractual relationships (in our case fuel and landing fees), depreciation strategies, tax strategies, debt strategies etc. Their strategies sometimes even consists of cheating their labor force of fair compensation, which unfortunately in the industry happens all too often. Pilots can affect profitability at a micro level; for example, single engine taxi reduces fuel expense which lowers operating expenses, which increases profit; also, an aviation mishap would catastrophically effect profit-- something pilots have direct control over. I don't mean that to sound grim, but only highlight that there is a lot of responsibility riding on our shoulder which again I go back to my point of fair compensation. Rambling aside, the goal of management is to extract as much profit from the revenue that labor generates; we refer to this number as profit margin. Interestingly enough, the managers in charge today by and large went to business school in the 80's and 90's. The hotness back then was to increase profitability through efficiencies. The Japanese companies were killing US companies through a process called Six Sigma which basically entails ID'ing and cutting inefficiencies. When I got my MBA in the late 2000's the focus was not so much in shrinking inefficiencies; the focus was on generating more value so customers would come back and/or you could charge more for your product or service. Fed Ex is failing at this; instead management would rather cheat their labor force out of fair compensation instead of fixing the problems (like Fed Ex Ground) that are destroying the company's intrinsic value. Back to the discussion, below is a list of each company's generated revenue, profit margin, and # of pilots on the seniority list. Side note, UPS and FDX are the only two companies on the Fortune 100 List ranking in at 34 and 39 respectively. None of the Big 4 pax carriers made the list.
UPS
2022 Revenue: $101.7 Billion
2022 Profit Margin: 11.07%
# of Pilots: 3446
Fed Ex
2022 Revenue: $93.5 Billion
2022 Profit Margin: 6.7%
# of Pilots: 6000
Delta:
2022 Revenue: $50.50 Billion
2022 Profit Margin: 2.6%
# of Pilots: 14561
United:
2022 Revenue: $44.95 Billion
2022 Profit Margin: 1.64%
# of Pilots: 15014
American
2022 Revenue: $48.972 Billion
2022 Profit Margin: 0.26%
# of Pilots: 15381
Hawaiian (who is paying their WB CA's $436/hr)
2021 Revenue (could not find 2022): $2.8 Billion
Could not find Margin
# of Pilots: 847
As you can see, Fed Ex and UPS generate more revenue than all of the legacies and with a smaller pilot force (yes I get there are more diversified segments to these companies but the counterargument is that pax carriers generate a lot of revenue through their credit card agreements). In terms of revenue generation Fed Ex and UPS pilots are more efficient and deserve to be compensated more. If you think that's an arrogant statement, it's the same logic that companies use to pay WB pilots more than NB pilots; the argument is that WB aircraft have more space and therefore generate more revenue for the company.
Going back to my statement above about us being "good little soldiers," I'd argue that Fed Ex and UPS pilots sacrifice their health more than pax carrier pilots. For our domestic guys at Fed Ex, hub turns are HARD on your body. I consider myself to be healthy, in good shape and actually a night owl, however a week of hubturns wears on me. In a given month I want to spend time with my friends and family during normal hours during the week and then go back to a hub turn schedule, then go back to a normal schedule. This $Hit is scientifically proven to shorten your life and cause health issues. I was willing to do it for my country and the mission in the military, but If I'm doing it to make rich men richer, then I deserve to be compensated appropriately! Our International guys made a lot of money and they deserved every penny of it. The were asked to fly to countries with harsh COVID restrictions, poked and prodded, sprayed with God knows what, locked into hotel rooms eating whatever crap was given to them, and on the verge of losing their sanity. Fed Ex and I'm sure UPS asks us to do other things that other carriers don't ask of their pilots. COVID aside, they ask us to go to unfriendly countries (anyone remember the Fed Ex pilot that was arrested in China?), fly through weather most pax carriers wouldn't consider, and do all of that while most of the time being fatigued. In addition, the crap that we carry on our airplanes is the crap that none of the pax carriers are allowed to carry. Anyone remember UPS Flt 6 that crashed in Dubai due to a fire caused by lithium batteries? Cargo pilots are exposed to more dangerous and unhealthy conditions than their legacy pilot equivalents.
Finally as I mentioned above, there is a limited talent pool of qualified pilots. As the legacies have dropped their PIC requirement, Fed Ex still requires 500 Jet PIC (1000 preferred) and UPS requires 1000 jet PIC. These companies are asking for an even more qualified pilot in an already very small pool. As such, I expected to be compensated more for my qualifications. It is my prediction that these companies have higher standards because they want more mature and experienced pilots; they want pilots who will make more mature operational decisions in the aircraft and conduct themselves in a manner that doesn't reflect poorly on the company. At the end of the day, it buys down risk for the company. Fed Ex has a crew force of former astronauts (so I've been told), retired Generals, retired military Flight Demo Pilots, former Test Pilots, former Regional Chief Pilots, successful business owners, folks with law degrees and MBA's and folks with degrees in rocket science and more! The Fed Ex pilot force is one of the most densely talented groups of people in not only aviation, but quite frankly any industry-- our folks deserve to be compensated appropriately!
So yes, it's not arrogance but factual data that Fed Ex and UPS pilots deserve to be compensated more. I'll be honest; I feel a little cheated when my Narrowbody buddy at United is making $3k/mo more than me (I'm on a Widebody) while he gets to spend a week in the Carribbean working less days than me while I'm doing AM hub turns. Especially while my company is crying about slowing demand yet they are meanwhile buying back stock and enjoying record profits. We deserve industry leading everything and I hope every Fed Ex pilot understands how valuable they are!