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Union wage negotiations are based on the assumption that cash flow is affected very little by the individual flyers' choices and decisions.
I believe your observation is at the center of the unions' wildly errant claim that 9/11 does not qualify as force majeure but is instead an economic event. In reality, when the public observed the very real danger that commercial aircraft could be turned into kamikaze guided cruise missiles, a great many travelers made the rational decision not to travel by air. The unions refuse to acknowlege this.
business is rapidly approaching pre-9/11 levels
You are being very hardheaded here. Let's say I am an 'individual flyer,' with cash in my wallet which I am considering spending on traveling from A to B. But instead of flying, I decide to drive, or take Amtrak, or even stay home. That decision has affected the airline I would have used, in that they do not have my money. If enough 'individual flyers' make a similar decision (say, because some maniacs flew airliners into buildings one day), the cash flow of the airline is significantly affected. Changes in a company's revenue are a direct result of the cumulative effect of millions of 'individual flyers' decisions. What Dave Griffin was saying is that unions approach negotiations as though changes in cash flow, resulting from these decisions, don't matter - as if the industry were still regulated and cash flow guaranteed. This is no longer a valid or workable position.Incomprehensible as written. Please provide specific examples of "individual flyers' choices and decisions" that significantly affect cash flow to the point of being fundamental in negotiations.
So what if the attacks had happened 2 years earlier, when the economy was still pumping right along? The same people would still be afraid to fly, and the airlines' revenues would still be in the toilet. Would that then qualify as force majeure, since there was no prior economic downturn? If not, why not? And even if it is a 'de facto economic problem,' why do the unions (and you, apparently) think that pilots should be immune from it? Not many other workers in the US are. And I would also like to know exactly what numbers you're talking about when you say 'business is rapidly approaching pre-9/11 levels.' Not from the numbers I've seen. To say that the load factors are almost back to normal is misleading - they are up on reduced capacity. And yields are WAY down, as airlines cut fares to try to get people traveling by air again.If travelers decide not to travel by air, for whatever reason, then it's a defacto economic problem. The simple fact is, the airlines have used force majuere provisions to mitigate management and business fall-off from early last year, not just 9/11. While business is rapidly approaching pre-9/11 levels, there are no indications that the airlines will cancel their force majuere declarations.
This argument actually works against you, for this is exactly what the unions are trying to do with the airlines. They are unilaterally trying to force the company to operate unprofitably - to pay expensive pilots to fly airplanes that aren't needed on routes that can't support them.Also, other fixed costs like aircraft leasors should be legally forced to take lease price cuts when the airline has a biz turndown? Should the airlines be legally allowed to unilaterally reduce the price of fuel from their suppliers during force majuere declaration?
I think in this context this should be 2 separate questions: "are they paid fairly?" and "how are they paid in comparison?" Are Southwest pilots paid fairly? They seem to think so (and they're hiring). How are they paid in comparison to Delta and United? Not as well. Are they paid fairly in comparison to Delta and United? Not really a valid question, in my opinion - you're comparing apples and oranges. The 'majors' are more cumbersome in large part because of the effects of heavy unionization. Note that Delta is in the best financial shape of the 'majors' - and that it is the least unionized of them.Are they paid fairly in comparision to pilots who work for more cumbersome, unionized companies?
bobbysamd said:
While I would hold fast to my theory that a conservative mood and bad times eroded much of the unions' clout, Enigma makes a point about deregulation. I see that more as a conservative concept, even though liberal Sen. Kennedy may have latched onto it. Conservatives want less government, fewer laws and fewer regulations governing our lives.
That is entirely untrue. There certainly is a need for unions, if for no other reason than everybody involved in aviation is inherently "me-oriented." Everyone is out to screw the other guy, and the only way to keep it in check is with unions. However, I do believe that in many cases, the unions overstep their bounds. Rather than merely helping to determine a fair wage and working conditions for their members, they put unnecessary demands on how a company does business. That is what I disagree with. A company should not have to defend itself against laying off people when the economy goes south. Very few other industries do. I know your company signed a contract. But there are provisions in that contract that are absolutely ludicrous, such as being unable to furlough or reduce the number of aircraft "for economic reasons.' That is asinine, and the company would not agree to it if the union didn't have a gun to their heads (read strike). I suppose its like carmakers who know there is a defect with their car - the cost of recall is higher than the cost of litigation, so they don't recall the defective vehicles. Mgmt probably figures a strike would be more economically damaging than keeping unnecessary people and airplanes, so they sign the contract. Both options are economically damaging, and they have to choose the lesser of 2 evils.I would suspect that you and Dave would be happy to see the major unions self-destruct anyway, so let us. How should worker be compensated? Should there even be a labor contract? I get the feeling that you and Dave think that pilots should be at will employees only.
That's right. And statements like FlyDeltasJets' "I just want them to abide by the contract they signed" work both ways.force majuere IS part of the contract - although the reasons for and degree and duration are subject to the labor courts
Again, load factor is up, but on reduced capacity. And how can 9/11 'accelerate the retirement of 727's whose capacity isn't needed,' yet not qualify as 'force majeure?'As far as business increases go, it is increasing according to the company and my own observations in flying packed airplanes, both narrow and wide bodies, domestic and international routes. 9/11 has accelerated the retirement of inefficient 727 whose capacity isn't needed right now. Yields are down granted, but I they'll follow up also as the year and economy progress.
It works for YOU, and that's what matters, right? If it isn't perfect, that means there's room for improvement. Most seem to be of the opinion that "if it ain't broke, don't fix it." Nothing will ever improve with this mindset.I think the system works - not perfect, but probably as good as practically possible given the foibles self-interests of human beings.
In 5 years, I'll probably still be with ASA, and trying to get on with a major. I imagine it'll take that long for the airlines to rebound and re-absorb all the guys currently displaced, then I'll get my chance. Just because my opinion doesn't agree with yours, doesn't mean I am a doomsayer, a defeatist, nor a union-hater; I certainly am not miserable nor jealous. For the time being, I am right where I want to be. I think the unions are a good thing to a certain extent, but definitely need improvement. I am glad you are working hard to get your company back up to speed. It would behoove more of your colleagues to follow your lead, instead of holding up the recovery process by complaining about how the company is screwing them and expending energy filing grievances.I'm confident that I'll still be flying for a major airline with a good contract, safe working conditions, and fair compensation. How about both of you guys? I leave the doomsayers, defeatists, and union-haters to stew in their own misery and jelousy.