Quote:
Originally Posted by RgrMurdock
Is there any kind of pay raise associated with this? A freeze for 10 years at a 2% inflation equals a 20% pay cut.
No. Longevity increases up to 12/4 years for CA/FO would continue until 1/1/15 or the first 175 delivery, whichever would come first. After that, there would be no increases at all until 1/1/18. After that, there would be 1% increases unless a pilot declines to flow when their turn comes up.
This is absolutely a pay cut in real terms. Assuming a 3% inflation rate, a first officer earning ~$40/hour in 2013 would have to make ~$52/hour in 2024 (at the end of the 10 year contract period) in order to maintain their purchasing power in real terms. With this pay freeze, the same FO would be making the equivalent of ~$30/hour in 2024 in today's dollars. For captains making $88/hour at the 12 year cap, the pay would have to be ~$118 in 2024. Instead, the purchasing power would be the equivalent of ~$65/hour today. This equates to a ~25% pay cut over 10 years.