D
D'Angelo
Dave Benjamin said:Isn't the proposed paycut something that would bring ASA's compensation package more to the low end rather than the middle? Do you realize that crew costs are only about 10% of the total overhead of most airlines? How does Southwest manage to stay profitable with their compensation package? Your vision is fatally flawed. The problem with your line of thinking is that you could turn the profession into an 8 buck an hour job. Where does it stop? What you're recommending is pattern bargaining in reverse. Compensation would steadily fall instead of rise gradually. Everybody just keeps taking paycuts to get the growth. There will always be junior people to benefit from the growth. What about doing something for the senior people that have helped the company get where it is?
According to the article we're reviewed ASA is one of the most profitable airlines with its CURRENT cost structure. There is no apparent threat to the financial viability of the company. Some will say that ASA will lose out on future aircraft if they don't vote for paycuts. However if ASA is more profitable than SkyWest (13 vs 10% operating margin) why would the holding company send an inordinate number of aircraft to a less profitable airline?
If an outlandish payraise is granted then the profitability will start to shrink. Actually it would be smart of the company to just give into all the demands and then shrink the company to keep it profitable. The senior people already benefit. They get a payraise every year based on longevity until they max out which takes many years. Growth is still much better than stagnance. You lose QOL by having stagnance