Daytonaflyer
Well-known member
- Joined
- Mar 3, 2006
- Posts
- 1,383
We'll lets see. Let's say your company decides to expand rapidly and compete with ups/fdx directly (the freight world is much different, so it's hard to compare). They would probably do well because their costs are lower because you accept low, below standard pay and benefits. As your company continues to expand and do well on the backs of it's underpaid employees, it hurts ups/fdx. Eventually ups/fdx have to lower costs to compete with your company. This would include pilots taking paycuts. This is how the industry is brought down by pilots working for substandard wages. Get it now.
Yes, I think we all understand that argument, it is a typical argument, and it's incredibly simplistic thinking which only applies if all variables are the same between two airlines. They are not.
There ARE other scheduled cargo companies that compete directly with FedEx and UPS. Almost all of them pay significantly lower wages than the big two, yet many of them have struggled and/or failed while FedEx and UPS continue to thrive. Many of these smaller cargo companies pay wages less than half that of the big two, yet remain unsucessful. Why? Answer that.
Clearly employee wages are not the only factor determining the financial success of a company. There are many factors. We should be complaining that you guys at large airlines have pulled down wages by allowing your companies to fall into banckruptcy and accepting huge pay cuts which is strikingly similar to the effect detrimental effect foreclosures have on home values in real estate.
Another example, the union auto companies of Detroit now have lower wages than many of their foreign competitor's, yet they still continue to struggle. GM is in desperate need of cash, and Chrysler may not survive without a buyer soon. If your argument were correct, then the company should be doing well given their sub-standard employee wages. They are not. Why? Answer that too.
None of that matters though, because Allegiant's wages are improving and eventually they will be similar to other airlines.