Company motivation to agree on Contract
#31
Where's my Mai Tai?
Joined: Aug 2006
Posts: 1,821
Likes: 13
From: fins to the left, fins to the right
We need to aim higher.
#32
maxing the min/Moderator
Joined: Aug 2005
Posts: 1,605
Likes: 15
From: 757
#33
Line Holder
Joined: Mar 2018
Posts: 283
Likes: 17
#34
On Reserve
Joined: Jan 2026
Posts: 17
Likes: 4
Fuel costs have moved higher again, some airlines are already trimming growth, and there’s more focus on protecting margins than expanding at all costs. That’s happening now, not hypothetically.
At the same time, they’re carrying significantly higher fixed labor costs from the last round of deals, which were negotiated during one of the strongest demand environments the industry has ever seen.
Demand still looks solid, but the landscape is clearly shifting from expansion toward cost control.
Personally, I think expecting another quick cycle of outsized gains like we saw post-COVID is optimistic. The current environment looks materially different than the one that produced those contracts.
#35
Line Holder
Joined: Mar 2018
Posts: 283
Likes: 17
What makes you think the legacies are walking into the same environment that produced the last round of contracts?
Fuel costs have moved higher again, some airlines are already trimming growth, and there’s more focus on protecting margins than expanding at all costs. That’s happening now, not hypothetically.
At the same time, they’re carrying significantly higher fixed labor costs from the last round of deals, which were negotiated during one of the strongest demand environments the industry has ever seen.
Demand still looks solid, but the landscape is clearly shifting from expansion toward cost control.
Personally, I think expecting another quick cycle of outsized gains like we saw post-COVID is optimistic. The current environment looks materially different than the one that produced those contracts.
Fuel costs have moved higher again, some airlines are already trimming growth, and there’s more focus on protecting margins than expanding at all costs. That’s happening now, not hypothetically.
At the same time, they’re carrying significantly higher fixed labor costs from the last round of deals, which were negotiated during one of the strongest demand environments the industry has ever seen.
Demand still looks solid, but the landscape is clearly shifting from expansion toward cost control.
Personally, I think expecting another quick cycle of outsized gains like we saw post-COVID is optimistic. The current environment looks materially different than the one that produced those contracts.
#36
Where's my Mai Tai?
Joined: Aug 2006
Posts: 1,821
Likes: 13
From: fins to the left, fins to the right
I don’t think it will be an outsized gain like last time. It doesn’t have to be though. A 10% raise at DOS would put them at $548 for the top rate and go from there.
#37
My guess is 5% and than 3%/yr for the remainder of the contract (final top rate around $590) at the legacies. They’ll probably work on vacation and work rules as well. My impression is that they don’t see retirement as a major area of need anymore since every pay raise automatically increases what 18% plus cash over cap pays out.
#38
Line Holder
Joined: Oct 2023
Posts: 464
Likes: 212
What makes you think the legacies are walking into the same environment that produced the last round of contracts?
Fuel costs have moved higher again, some airlines are already trimming growth, and there’s more focus on protecting margins than expanding at all costs. That’s happening now, not hypothetically.
At the same time, they’re carrying significantly higher fixed labor costs from the last round of deals, which were negotiated during one of the strongest demand environments the industry has ever seen.
Demand still looks solid, but the landscape is clearly shifting from expansion toward cost control.
Personally, I think expecting another quick cycle of outsized gains like we saw post-COVID is optimistic. The current environment looks materially different than the one that produced those contracts.
Fuel costs have moved higher again, some airlines are already trimming growth, and there’s more focus on protecting margins than expanding at all costs. That’s happening now, not hypothetically.
At the same time, they’re carrying significantly higher fixed labor costs from the last round of deals, which were negotiated during one of the strongest demand environments the industry has ever seen.
Demand still looks solid, but the landscape is clearly shifting from expansion toward cost control.
Personally, I think expecting another quick cycle of outsized gains like we saw post-COVID is optimistic. The current environment looks materially different than the one that produced those contracts.
#39
Well, they ain’t going backwards. We clearly need to be aiming at legacy pay rates plus some percentage in order to maintain competitiveness. A snap up clause would be great, but I don’t have my hopes up as FedEx failed to secure one. Of course, that’s all before we even talk about trip trades, trip change premiums, minimizing circadian shifts, adding 117 equivalent protections, a retirement bump, cash over cap, etc. You get the idea…it’s a long list, and while we certainly won’t get all of it, it’s going to take a solid 90% of what I just mentioned and then some to earn my yes vote. Make no mistake; for a whole lot of us ‘newer than 2014’ folk, this contract is going to have to be fairly epic for us to vote it in. “Best we could negotiate” and “there’s only so big a slice of the pie” excuses won’t cut it this time around.
#40
Line Holder
Joined: Jun 2017
Posts: 429
Likes: 8
From: B767
As a post 2014 hire, I agree that patience is wearing thin with many aspects of this job. Mediocre, at best, hotels, lagging pay (relative to legacies, inflation, and soon FedEx), lagging pension (relative to both inflation and now FedEx), 15 yr instead of 12 yr pay tables, no cash over cap, miserably lagging line construction, lagging trip trade system, lagging Reserve rules, lagging reschedule protections, and a worn out fleet. Obviously, some things are completely out of the EB’s and NC’s hands, but some things are their job to obtain for us at the negotiating table.
Everything is compounded by the treatment we receive from QA, crew scheduling, etc…
The scheduling department is run worse than a regional or ACMI…
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