The Current Negotiating Environment
#31
Don't say Guppy
Joined: Dec 2010
Posts: 1,926
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From: Guppy driver
It sucked from 03-12.
It is OK now. Almost good. 2013-2015.
Looks like "sucked" is winning. I would be spectacularly happy simply making it back to "good". 20% pay raise, and 3-1 duty rig brings it back to "good", at least for me.
#32
Gets Weekends Off
Joined: Aug 2013
Posts: 2,159
Likes: 1
Some of the things that sort of influenced this are:
1. 2 8 year democrat presidents (Clinton and Obama).
2. Age 65
3. 9/11
4. Flood of RJ's increasing capacity too much
5. High fuel costs
The only thing that really makes me a bit nervous is all the occasional talk about age 70.
The world economy may slow but joe six pack still wants to fly from Chicago to Orlando for 79 bucks. Regardless of the security environment, this gig is all about supply and demand. Supply and demand among the pilot ranks and supply and demand of the customers.
This is the longest stretch of low fuel costs I can recall so that's good. The RJ's are decreasing in their dominance due to their poor economics, so that's good. ALPA doesn't appear to be pushing age 70 so that's good. Hopefully no big major US security event takes place and nothing bad since 9/11 sot that's positive. And, likely, we won't see a socialist democrat be elected and after the Obama abortion of a presidency likely no democrats elected for the rest of my lifetime. Yeah I know democrats are "labor friendly", but none of them would allow us to self help so it's a moot point. RLA limits what anyone can accomplish regardless of who is in the whitehouse.
Put all that above in a cake and bake it and I think our negotiating environment and our overall position is favorable.
#33
Gets Weekends Off
Joined: Mar 2008
Posts: 1,083
Likes: 0
I heard when it was analyzed based on projected profits, inflation, work rule and scope changes, the DAL TA actually was concessionary. The DAL projected profits are large, but not large enough to trigger the higher profit sharing percentage threshold and thus the pilots actually make more by keeping the lower pay rates and higher profit sharing (lower threshold) of the current contract. Kind of a bird in the hand vs. two in the bush thing.
#34
Gets Weekends Off
Joined: Mar 2008
Posts: 1,083
Likes: 0
This industry has changed fundamentally over the last 35+ years. "Pattern Bargaining" (or "leapfrog" as we liked to call it) was a phenomenon that grew out of the regulated environment when there was less cost pressure to settle. The market forces are very different and very powerful today.
It isn't the industry in which your dad or grandfather flew...mine either.
It isn't the industry in which your dad or grandfather flew...mine either.
#35
Gets Weekends Off
Joined: Mar 2008
Posts: 1,083
Likes: 0
Be careful what you wish for. I can't recall hearing anyone from labor who really understands the RLA (I'm not in that group) advocate repealing it, and if you open it up to be amended, there are labor protections the industry would like to tear apart.
#36
Gets Weekends Off
Joined: Mar 2008
Posts: 1,083
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#37
(retired)
Joined: Apr 2011
Posts: 422
Likes: 0
From: Old, retired, healthy, debt-free, liquid
Record profits are good for variable comp...bonuses, profit sharing, etc. Base compensation is largely driven by the supply and demand for class labor which hasn't changed except at the smaller, regional-type operations.
There is a misconception that base comp gets driven by profitability. It doesn't. However, your variable comp component has a good chance of rising significantly.
With an amendable date in 2017 and a likely settlement point somewhere in 2019, only time will tell. No skin in the game, but I'm hoping for good things between now and then.
#38
Gets Weekends Off
Joined: Apr 2006
Posts: 2,750
Likes: 0
From: 737 CA
The economy has been slowing down for the last 20 plus years.
Some of the things that sort of influenced this are:
1. 2 8 year democrat presidents (Clinton and Obama).
2. Age 65
3. 9/11
4. Flood of RJ's increasing capacity too much
5. High fuel costs
The only thing that really makes me a bit nervous is all the occasional talk about age 70.
The world economy may slow but joe six pack still wants to fly from Chicago to Orlando for 79 bucks. Regardless of the security environment, this gig is all about supply and demand. Supply and demand among the pilot ranks and supply and demand of the customers.
This is the longest stretch of low fuel costs I can recall so that's good. The RJ's are decreasing in their dominance due to their poor economics, so that's good. ALPA doesn't appear to be pushing age 70 so that's good. Hopefully no big major US security event takes place and nothing bad since 9/11 sot that's positive. And, likely, we won't see a socialist democrat be elected and after the Obama abortion of a presidency likely no democrats elected for the rest of my lifetime. Yeah I know democrats are "labor friendly", but none of them would allow us to self help so it's a moot point. RLA limits what anyone can accomplish regardless of who is in the whitehouse.
Put all that above in a cake and bake it and I think our negotiating environment and our overall position is favorable.
Some of the things that sort of influenced this are:
1. 2 8 year democrat presidents (Clinton and Obama).
2. Age 65
3. 9/11
4. Flood of RJ's increasing capacity too much
5. High fuel costs
The only thing that really makes me a bit nervous is all the occasional talk about age 70.
The world economy may slow but joe six pack still wants to fly from Chicago to Orlando for 79 bucks. Regardless of the security environment, this gig is all about supply and demand. Supply and demand among the pilot ranks and supply and demand of the customers.
This is the longest stretch of low fuel costs I can recall so that's good. The RJ's are decreasing in their dominance due to their poor economics, so that's good. ALPA doesn't appear to be pushing age 70 so that's good. Hopefully no big major US security event takes place and nothing bad since 9/11 sot that's positive. And, likely, we won't see a socialist democrat be elected and after the Obama abortion of a presidency likely no democrats elected for the rest of my lifetime. Yeah I know democrats are "labor friendly", but none of them would allow us to self help so it's a moot point. RLA limits what anyone can accomplish regardless of who is in the whitehouse.
Put all that above in a cake and bake it and I think our negotiating environment and our overall position is favorable.
Wow. Surely you can't be serious. Best days of my career were during the Clinton admin. Obama's tenure has been a boon for this industry...not to mention your B-fund. Presidents do lots of things besides imposing PEBs. (which he did not do for Spirit, btw). By appointing Babbitt to FAA, and Pistole to TSA, we now have FAR 117 and Known Crewmember. Obama's legacy.
Look at the carnage that occurred in this industry under Reagan, Bush I, and Bush II. Will we ever learn?

Sled the reluctant Democrat
#39
Gets Weekends Off
Joined: Dec 2012
Posts: 547
Likes: 0
Allow me...I'll be very quick.
The industry with the final three "legacies" and Southwest, is consolidated and fiercely competitive. No surviving management group at any surviving company is going to bless a deal that would put them at a competitive disadvantage with their industry peer companies. With an approximate +20% domestic market share at each of the four survivors, it minimizes the leverage obtainable from the NMB in a Sec 6 negotiation...too much potential for too much disruption. The MEC's likely did the best they could under consolidated circumstances.
There are a number of other issues related to your observation, but that's enough (no one reads this stuff anyways
).
I truly wish you the best in Sec 6.
The industry with the final three "legacies" and Southwest, is consolidated and fiercely competitive. No surviving management group at any surviving company is going to bless a deal that would put them at a competitive disadvantage with their industry peer companies. With an approximate +20% domestic market share at each of the four survivors, it minimizes the leverage obtainable from the NMB in a Sec 6 negotiation...too much potential for too much disruption. The MEC's likely did the best they could under consolidated circumstances.
There are a number of other issues related to your observation, but that's enough (no one reads this stuff anyways
).I truly wish you the best in Sec 6.
#40
For me, it was a OK gig from 95-2000. Great 2000-2002.
It sucked from 03-12.
It is OK now. Almost good. 2013-2015.
Looks like "sucked" is winning. I would be spectacularly happy simply making it back to "good". 20% pay raise, and 3-1 duty rig brings it back to "good", at least for me.
It sucked from 03-12.
It is OK now. Almost good. 2013-2015.
Looks like "sucked" is winning. I would be spectacularly happy simply making it back to "good". 20% pay raise, and 3-1 duty rig brings it back to "good", at least for me.
The paychecks were nice, but I would hardly call it a great time. The money made it harder to notice.
Last edited by CousinEddie; 10-03-2015 at 06:58 AM.
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