Cargo Pilot Pay At Top Of Industry

[TonyC]

Cargo pilots move atop industry pay ladder
Some fliers from financially troubled passenger airlines applying at UPS

By DAVE HIRSCHMAN


As passenger airlines have borne the brunt of post-9/11 furloughs and pay cuts, cargo carriers UPS and FedEx have moved to the top of pilot pay scales, and their wings have gained new luster.

The first thing you should do when you see Dave Hirschman in the by-line is go grab your 5-lb bag of salt. You may recognize him as the author of Hijacked, the book about the attempted hijack by Auburn Calloway of a FedEx DC-10. At the time of that event, he reported for The Commercial Appeal, the local Memphis rag. He is well-known as a "Friend of FedEx" which means friend of Fred Smith - - NOT a friend of pilots. It's no surprise that this article came up on the FedEx pilots' website. Fred wants us to think the public thinks we're overpaid.

You also should be suspicious when the primary sources for the story were airlinepilotpay.com and Kit Darby. (My sincerest apologies to airlinepilotpay.com for lumping you together.)


Now, the premise is that cargo pilots have "moved to the top" of the pay scales suffers from two major discrepancies. First, there is an assumption that UPS and FedEx are representatitve of cargo pilots in general. It fails to mention the Airbornes/DHLs, the Atlas/Polars, the Geminis, and the Mountain Air Cargos that are out there slugging it out just like they have been all along. Does the fact that a UPS pilot might make more than an American pilot support the claim that cargo pilots are atop the pay ladder? Hardly. On the whole, I believe you'll find that cargo pilots as a group still fare poorer than their passenger counterparts.

Second, his premise has cargo pilots' compensation "moving," when in fact cargo pilots' pay have not moved at all. UPS is working, I believe, in the third year of Contract Negotiations. FedEx is approaching a year of negotiations. Both groups have suffered from below-industry standard compensation for decades. Seeing those two carriers atop a compensation list and spouting that they've moved to the top is ludicrous. The only movement has been by passenger carriers, unfortunately in the wrong direction.

Fred Smith, and UPS, will no doubt attempt to use this hogwash to justify their attempts to withhold fair and equitable compensation. His promise of years ago to compensate FedEx pilots at the rate of "Delta plus a nickel" are now only possible after Delta suffered a 30+% pay cut. Incredible! I would hope that we are intelligent enough to see through the nonsense.

I'm sure Dave Hirschman got a big thank you from Fred.

 

[Big Beer Belly]

Excellent post Tony C! Couldn't agree more with your analysis.

 

[Rez O. Lewshun]

Tony C,

I have patiently waited for you to post this thread. I agree with you thoughts, however, the FedEx pilots tried to compare equipment rates in the past and Fred said 'nope, different industry/scenario/flying. DAL/UAL rates do not apply.'

But now Fred can use the pilots arguement against them. Saying, 'you always liked the legacy carriers rates....so lets revist your logic"

I think your NC will have a difficult time. The best tactic is negotiate pay based upon company revenue/profit. Meanwhile using Freds arguement against him, that the legacy scales are not comparable. I'd love to observe some of the neg meetings....

[I always like the good cop, bad cop tactic....]

Combine this with sweet quality of life enhancements. Too many pilots want to see too many [high] dollar signs. There is more than just hourly rate. Go for a fair hourly rate and jack them up with soft time, and attractive work rules....

Finally, you've got to spend negotiating capital on cabatoge. And get your PAC in order, cause the real battle will be in Cap Hill. The cargo guys are primed to start thier own Cargo-PAC, with UPS and others, specifically to adress cabatoge.

Just don't strike in the 4Q, the public out cry will be deafening...

The New Airline Industry will be in cargo (as long as cabatoge doesn't kill it) and productivity (aka SWA).

Good Luck, we are all counting on you.

 

[Publishers]

Fred Smith was right and discussions of these industries being slightly alike is dangerous and without foundation.

The passenger airlines have come back because of, among other things, their market would not pay the wages. Cargo has maintained because their product has remained where it was.


That said, there is considerable difference between Fedex, UPS, Gemini, Atlas, Evergreen and others. They serve different markets. As example, FEDEX started as basically an airborne oriented enterprise while UPS did not. In fact, they flew only when forced to.

Evergreen and others take no market risk at all as far as the retail product and merely supply lift.

The point of this is lumping together all these entities because they fly aircraft is dangerous because assumptions get made and comparisons where there is no comparison at all.

Ultimately the market pays the tab and it has to be willing to. Flying checks as example could not stand expensive aircraft and crews.

Remember that most passenger airlines are just that. They haul passengers and how they do that counts. In the cargo business, the customer wants it at point A at a given time. They do not care at all how it gets there.

 

[Rez O. Lewshun]

Remember that most passenger airlines are just that. They haul passengers and how they do that counts. In the cargo business, the customer wants it at point A at a given time. They do not care at all how it gets there.

But they do care...how fast it gets there....

Good points....

 

[FoxHunter]

Also, pensions..... never more in danger at Brown and Purple.

Finally, cabatoge...... with Bush in a 2nd term office and nothing to lose and a Repub Congress combined with the camels' nose already under the tent (Alaska/Stevens), look to see a solid cabatoge foundation built that even the most effective pro-labor legislator can't reverse....

Pro Bush airline pilots...you voted for him...here it comes!! Capitalism and free market societies that we all love an adore will make US pilots too expensive.

We all love outsourcing... be prepared to be out sourced!

Pensions? I expect to see a cash balance plan at FedEx for new hires with the new ALPA contract. Present pilots wiill have the choice of the current plan, or the cash balance. Just like the rest of FedEx's non-union employees had last year.

Cabatoge....Best thing that could happen to the FedEx pilot group. The 727s up in Canada would then be flown by FedEx pilots. The A300B4 seen in both London and Paris flown by Air Contractors would be replaced by FedEx A300s.

FedEx doesn't like out sourcing of its ops. They do like total control. They out source where thy have to but would prefer not.

 

[freightdogfred]

Pensions? I expect to see a cash balance plan at FedEx for new hires with the new ALPA contract. Present pilots wiill have the choice of the current plan, or the cash balance. Just like the rest of FedEx's non-union employees had last year.

Cabatoge....Best thing that could happen to the FedEx pilot group. The 727s up in Canada would then be flown by FedEx pilots. The A300B4 seen in both London and Paris flown by Air Contractors would be replaced by FedEx A300s.

FedEx doesn't like out sourcing of its ops. They do like total control. They out source where thy have to but would prefer not.

They might like total control, but if they can pay a Sri Lankan pilot or Vietnamese pilot 30$ an hour vs 178$ an hour they might be willing to "ease up" on their position of total control.

Trust me, Cabotage or the "seventh freedom" of air commerce will not do you any good, it will be the end of your paycheck as you now know it.

 

[Cowboypilot]

I once asked a FedEx pilot, When did yall stop being freighters and started actilng like a airline," to which he replyed, "When our salaries went over 90K....."

 

[Publishers]

I think if we looked at it, there is far more danger of us taking foreign jobs than the other way around. Look at all the United States pilots flying for IASCO and other crew companies, flying in the Middle East, etc.

The bottom line reason is our training and the numbers entering the profession. In the end, we have less to fear from cabotage than the other countries. We worry about all these jobs shifted overseas when the fact is I believe we probably have more shipped in than out.

What goes out are the high paid union type industrial jobs. They are more politically visible. You have to remember that there is a quid pro quo here and if we let them fly into here and we let there pilots fly here, we get to do it there as well. Most of the airlines are subsidized and would not last if unprotected.

 

[FoxHunter]

They might like total control, but if they can pay a Sri Lankan pilot or Vietnamese pilot 30$ an hour vs 178$ an hour they might be willing to "ease up" on their position of total control.

Trust me, Cabotage or the "seventh freedom" of air commerce will not do you any good, it will be the end of your paycheck as you now know it.

In 1995 a company named Cathay Pacific hired pilots outside their system seniority list to fly their freighters. Cathay used an organization named UPAS to recruit lower paid pilots. Most were American. UPAS was owned by another American organization called ALPA.

Cabotoge, for FedEx pilots, would be a great step forward. Not the party line at ALPA, but great for us. Sorry I don't trust you because you have no idea.