Regarding the 3%/yr. pay increase: It costs each pilot 1.95%/yr in union dues, plus 1.6% Rate of Inflation = 3.55%. That's a LOSS of 0.55%/yr in real dollars in years two through four. Even if one discounts the rate of inflation, one must at least subtract the costs of doing business. So 3.0%/yr. - 1.95%/yr. = 1.55%/yr. pay increase.
Over the life of the contract, the entire pay raise equation might look like this:
9% first year pay increase + 3%/yr over following three years = 18% total.
1.95% union dues X 4 yrs = 7.8% cost of doing business
18% - 7.8% = 10.2% pay raise before rate of inflation factored in.
1.6% Rate of Inflation (conservatively) X 4 yrs. = 6.4%.
So, 10.2% - 6.4% = 3.8% real increase in pay over four years.
3.8% divided by 4 yrs. = .95% pay increase per yr. in real dollars.
With inflation on the rise and the Feds correspondingly raising interest rates, it doesn't seem like much after two plus years of negotiating. Hopefully, there are other work rule improvements that translate into REAL dollars.
Over the life of the contract, the entire pay raise equation might look like this:
9% first year pay increase + 3%/yr over following three years = 18% total.
1.95% union dues X 4 yrs = 7.8% cost of doing business
18% - 7.8% = 10.2% pay raise before rate of inflation factored in.
1.6% Rate of Inflation (conservatively) X 4 yrs. = 6.4%.
So, 10.2% - 6.4% = 3.8% real increase in pay over four years.
3.8% divided by 4 yrs. = .95% pay increase per yr. in real dollars.
With inflation on the rise and the Feds correspondingly raising interest rates, it doesn't seem like much after two plus years of negotiating. Hopefully, there are other work rule improvements that translate into REAL dollars.