Skywest 99 seat for 50 seat pay, 18 month agreement...anybody remember?

[120% Torque]

For those who don't remember, I have brought some of the sales brochures produced by Sapa/management for your reading pleasure. Remember how 18 months turned into almost 4 years and 0% and 1% raises were offered to the majority of the pilot group? This is what we got for "dealing Brad an ace" and letting Sapa give away longevity raises so that todays skywest pilot can't even keep up with inflation. Dont forget the company is approaching ONE BILLION DOLLARS NET PROFIT and bought another airline since all this got started. For some good humour read on:

The 18 Month TA dated July 1, 2003 through December 31,2004 - SAPA President Chris Abell, SAPA President


In January, when Managment announced pay cuts for salaried and management employees, SAPA diverted similar cuts for the pilot group.This was accomplished by implementing a SAPA Efficiency Task force, designed to identify potential savings within the Crewmember Policy Manual. One change that has already saved the company real dollars is the temporary revision to SP318, which institutes daily reserve availability categories, or "buckets". This type of change, which impacts a transient ~20% of the pilot force, effectively diverted immediate pay cuts of freezes for 100% of the pilot group. With increased reserve efficiency, it will be possible to carry fewer pilots to cover the same flying in a stable market. While initially difficult to swallow, without this type of increased efficiency -- sponsored openly by SAPA –(do you ever wonder who these guys represent? The company had already started making record profits at this time and its “gloom and doom we need to give the company more with nothing in return" being preached by your sapa reps) it is almost certain that wage cuts would have been immediately applied to SkyWest pilots in early January. But the need for increased efficiency does not stop with SP318.

One option that may speed our porgression toward POE and improve pilot quality of life is preferential bidding. The benefits to the company are many. Most immediately, it will eliminate the inefficiencies and cost ineffectiveness of transition. For pilots, it will give us more more immediate seniority-based control of our schedules. While this option may cost the company money in the short term, and cost pilots frustration along the inevitable learning curve, the long term savings to the company, and the benefits to the pilot group are many.

While SAPA and Management will continue to strive toward POE on every available avenue, we submit the following TA for immediate ratification by the SAPA general membership.


The Tentative Agreement

Highlights: "In English, please ..."

-18 month duration Instead of lasting 18 months this ended up going almost 4 years capped with a 1% raise for the majority of RJ’s and a 0% raise for the turboprop guys/gals.
- Current pay scales for current aircraft
- All longevity increases remain intact
- 50-99 seat rates (current 50 seat rates) Ouch, this one hurt the industry. Not just at the regionals. Jetblue and others set rates based on this. Almost five years later the harm compounded with more airlines that pointed at these rates saying this is what was now needed to stay what? Here's that favorite catch phrase of management again.....get ready..... we need these rates to "STAY COMPETITIVE".

- 100-159 seat jet rates (-20-22% below Southwest Airlines 2001/2002 scale)

Rates and Duration: How Much, How Long?

SAPA and Management have agreed to the following pay scale. If approved by majority vote of the SAPA General Membership, this scale will be effective July 1, 2003 through December 31,2004.

Notes & Background: Positions, Options, and Sticking Points

Duration — Proposed durations of this TA ranged from 12 months to 15 years. SAPA aggressively pursued a shorter agreement, due largely to the volatile state of the industry. While virtually every carrier is negotiating concessions and/or cuts, SAPA intends to at least maintain pilots' current position, and reserve the ability to address these rates should the industry recover. This TA represents a flexible compromise, which will benefit both pilot and company. It provides enough time and data for Management to establish start­up costs for new aircraft, and a short enough window to ensure fair initial compensation for all potential aircraft.

51 to 99-Seat Aircraft at Current 50-Seat Rates — This was arguably our biggest sticking point, albeit greatly moderated by the short length of the contract, and the assurance of no pay cut for our current pilots in present equipment.
Equal rates provide opportunity and flexibility. For example, a pilot might have more options in terms of domicile and schedule, without sacrificing pay. Also, the job and workload are comparable, with the same type rating for the 50, 70, and 90-seat RJs. There are numerous precedents for this type of scale in the industry: carriers have equal rates for B75/767; multiple iterations of B737; and MD80/B737, et al. These proposed rates are competitive — and may prove even more so -- once carriers that are in negotiations reach final agreements.
Some iterations of this TA included increased rates for 70 and/or 90 seat aircraft, and decreased rates for the current 50-seat fleet. SAPA considered this unacceptable, as it would sacrifice the good of the entire pilot group for the possibility of a slight increase for a very few. Under this TA, if Sky West should see larger aircraft on the property, we will be able to reassess the industry and our situation at the end of only 18-months.

 

[120% Torque]

SkyWest will attempt to do to Southwest Airlines what Southwest Airlines did to the airline industry.

Built upon pilot labor costs, Management can construct and scrutinize a business model based on competitors' operating costs, minus -20%. On the upside, this TA allows Management another viable expansion option. On the downside, it provides another worst-case contingency, should a large portion of our fleet or seniority list become idle. The Large Jet FO rates were among the last issues resolved in this TA.


Stock Options / Bonus Plans - For various reasons, appreciable progress was never made in these areas. Potential new legislation restricted Management's interest in pursuing stock options as a means of compensation. Incentive programs and bonus restructuring were discussed on numerous occasions, and included in more than one iteration of this TA. However, SAPA was unwilling to accept any portion of any bonus program included in calculation of total compensation, when used for industry comparisons. SAPA was unwilling to backtrack on our agreement of 2001. in which we separated Bonus from Compensation. Ha, Ha do you know how sapa sold the next pay proposal in 2006? I’ve brought it here for you to read:

An Increase in Base Pay Rates

The predominant feature of this year’s pay negotiations has been SkyWest’s new performance and margin based incentive plans. In development for over two years, the company’s incentive plans now involve all employees, including pilots. The plans represent SkyWest’s philosophy of providing competitive base rates, plus opportunities for bonus compensation, to its employees. Many of you have indicated that you prefer a larger increase in base rates, as opposed to participation in the incentive plans. In response, we extended the pay talks to explore every feasible way to increase base rates. After considering several proposals from us, management has agreed to an across-the-board increase of 1.2% for all pilots, in addition to our continued participation in the incentive plans. While some may feel that 1.2% isn’t much, and we’d love to have been able to say it’s more, this percentage is consistent with the increase given to other employee groups who were already participating in the company bonus plan. This means that SkyWest pilots received the greatest increase in compensation of all SkyWest employee groups in the past year, consisting of the combined effect of the 1.2% increase in our base rates, in addition to gaining 100% participation in the new, company-wide incentive plans.There is no arbitrary end-date. SAPA and management will periodically review these rates, and will negotiate appropriate rate tables when a new equipment type is introduced.

I wish to acknowledge and thank the members of our Pay Committee for their service and dedication to our pilot group during these extended negotiations. You will shortly receive information announcing the pay vote. In the meantime, I and other representatives will be available on the forums and via email to answer your questions. Upon the conclusion of our work with pay, our emphasis will shift to scheduling and reserve issues, and creation of a separate pilot policy manual.

Thank you all for your interest, feedback and patience while we worked through multiple scenarios to reach this agreement with our company’s management, which we now submit to you for your consideration.

Sincerely,
SkyWest Airlines Pilot Association
/s/
David Alden, President

(more from your faithful sapa rep on the 18 month proposal)

Conclusion and Endorsement

In relation to the current difficulties in which the airline industry finds itself, SAPA feels that this pay scale is acceptable for SkyWest pilots for the next I8 months. While many aspects of this TA are designed only as contingencies in the face of adversity, or possible avenues of advance toward a new era for SkyWest Airlines, this agreement provides both flexibility and security.
It is with a unanimous vote of the SAPA executive board and the SAPA regional representative board that we offer this TA to the SAPA general members for immediate ratification. Sapa reps Livingston and Cain would go on a several weeks cheerleading campaign to sell this piece of work. Multiple times they cautioned the pilot group that this was the best that could be achieved and if it was voted down, chances are the pilots would be offered less the next time to the table. How do you like those kind of guys negotiating for you?!

Details regarding voting procedures will be made available as soon as they are finalized. I ask you to weigh this issue carefully, and speak with a SAPA representative prior to voting. For the next two weeks, volunteer representatives will be available in crew lounges throughout the system to answer your questions.


On behalf of the SAPA executive and representative boards:

Chris Abell


President, SkyWest Airlines Pilot Association

 

[regionaltard]

Ineffective company-sponsored lapdog "union" staffed with management wannabes? Been there, done that, got the substandard pay.

You can't spell SAPA without sap.

 

[Tomct]

Torque...two very good post's. I sure hope that your pilot group is paying attention. Skytird...where are you...trousertrout.....where are you? Oh yeah that's right, your running back to the kool-aid bowl to re-energize and tell yourselves how much Jerry loves you!uke:

 

[dojetdriver]

Yep, remember that all to well. When UAL was in CH.11 and putting the squeeze on the UAX carriers, it sucked. Bear in mind, there was only 3 at the time, ACA, AWAC, and SkyWest. When the process started, UAL decided to put the flying up for bid and everybody had to reduce their costs to be competitive against MESA, TSA, CHQ and anybody else who wanted some. Part of it was to get 70 seaters at the UAX carriers

Those poor bastards ar AWAC had to give back A LOT of that nice juicy fat contract they just secured for themselves.

We at ACA agreed to give as well, but were able to get a pretty decent 70 seat rate negotiated for ourselves. The SkyWest guys that agreed to fly the larger equipment for current rates and freeze their pay definitely didn't do AWAC or us at ACA any favors with that one. Or anybody else flying 70/90 seat aircraft.

Sorry if this hurts any SkyWest's guy's feelings, but it's true.

 

[Gr82Aviate]

Yep, remember that all to well. When UAL was in CH.11 and putting the squeeze on the UAX carriers, it sucked. Bear in mind, there was only 3 at the time, ACA, AWAC, and SkyWest. When the process started, UAL decided to put the flying up for bid and everybody had to reduce their costs to be competitive against MESA, TSA, CHQ and anybody else who wanted some. Part of it was to get 70 seaters at the UAX carriers

Those poor bastards ar AWAC had to give back A LOT of that nice juicy fat contract they just secured for themselves.

We at ACA agreed to give as well, but were able to get a pretty decent 70 seat rate negotiated for ourselves. The SkyWest guys that agreed to fly the larger equipment for current rates and freeze their pay definitely didn't do AWAC or us at ACA any favors with that one. Or anybody else flying 70/90 seat aircraft.

Sorry if this hurts any SkyWest's guy's feelings, but it's true.

Doesn't hurt mine...I voted NO!

 

[Speedtape]

Doesn't hurt mine...I voted NO!

GOOD! Now, bow to your Sensei!

 

[Gr82Aviate]

GOOD! Now, bow to your Sensei!

Uh, what????

 

[Gr82Aviate]

GOOD! Now, bow to your Sensei!

I think you're confused...I voted no to the $hitty TA to fly the 50,70 & 90 for the same lousy rate. Vote yes to ALPA at every opportunity. Got it?

 

[siucavflight]

Uh, what????

I think that it was a napolean dynamite refrence.

 

[Jmoney]

Where's Skynation?

Skynation is curiously absent from any conversation like this. He will make excuse after excuse for mgmt. over there, but when something like this is brought up, that there is clearly no excuse for, ol' skynation can't be found.

-You sir, are the rear end of a horse!

 

[Tarzan]

What is the real intangible in this is overall QOL though out the industry and how it can impacted at the lowest levels.. It has been mentioned before that Jet Blue and other lesser carriers have made fiscal moves based what on what SkyWest and other carriers have made. The real question for SkyWest folks pertains to your future carrier.

Often the stance taken by many younger guys/gals is, "I want to get my thousand PIC and move on." The question that begs to be posed is how does your activity at this level contact your future career aspirations? Can the effect trickle up just as it has trickled down though this drastic change we are seeing now?

By agreeing to be scapegoats in this market, you could be destroying the very thing you seek eventually .I hate to take a tone such as this. However, I feel that we have reached a crossroad in this game we have all decided to play in. SkyWest could push this bar up significantly or it could allow for status quo. Do you like the trend you observe today, or would you like to help your overall chances to make better money and have a better quality of life?

Good luck in your future choice! Oh yeah, SkyNation, you’re a turd.

 

[ASAFOE120]

Great post Torque. How can Skyn or anyone defend that terrible agreement.

Back then, the majors were slashing costs and their pilots were taking paycuts so Skyw mgt put the doom and gloom dark times ahead speech to yall.

Now, everyone is making money (majors & regionals). Most of us have been (or will be soon) negotiating for a new contract which will include base rate wage increases. With the notable exception of Skyw. Is it not time yall advanced with the rest of the industry? Do you want to be the only pilot group not getting a raise over the next few years?

Isnt it time the great Skywest pilots group got pilot representation instead of management representation for the pilots.

Just my thoughts.