SWA contract amendable- no pay raise?

[ivauir]

Some thoughts:
- Anything less than COLA is a pay cut.
- Compensation is not just pay.
- Hard pay doesn't exist in the industry so lets look at variable compensation
- Anything too draconian or as inflexible in a schedule change would really mess up productivity.
- Happy pilots are productive pilots. Ultimately the pilots and SWA want the same thing - comntinued sucess. I expect we'll both get it (although there will be much angst on pprune - but when isn't there?)

 

[Green]

So do you guys think the next contract will represent a cost savings to the airline or a cost increase? Obviously anything other than a pay raise will be a reduction in buying power when you factor inflation/etc but it's hard to push for more when you're at the top.

 

[MLBWINGBORN]

Green..

Everything has a cost tied to it at SWA.
We are constantly reminded of what these costs are by the upper managment.

What you might see..and this is a guess..Is a shifting of costs toward other areas of the contract and a reduction in others.

We are already very productive and in some cases too productive..As someone has pointed out..

If the line that you bid is already at max legal limits you cant pick up extra trips.Extra trips are what many folks here live and die by due to their being in many cases at higher pay.

The solution is to have a few more pilots on the line and create lines that have less density and then folks can pick up more at higher pay.

But..more bodies cost more money..and above a certain number the cost increase is not offset by the increase in productivity.
This balancing act between productivity,cost, and compensation is a nearly daily battle.

My guess would be most of the time spent in the up coming talks is going to be around this issue.

The only way you can increase compensation without increasing cost is by allowing people to be more flexible as to how they are compensated.

And that flexibility is what the lanquage of the contract is all about.

The company wants higher productivity at a lower cost.

The pilots want compensation based on productivity and any benefits associated with the financial health of the company due to their very high levels of productivity.

The company wants lanquage that will allow them to use the pilots in any way needed to cover the schedule..

The pilots want lanquage that any time their normal line of flying is messed with they would be paid a premium for the company doing so.

And so on and so on..

The only thing that Gary Kelly and company must protect at all costs..and this is NOT a guess on my part...Is the good will of the pilots.

Without it and the work ethic that it creates the company would have a much higher cost to move people around the country..

And this is the one thing that SWA cant afford.Unrest in the pilot group.

Happy pilots are highly productive and well paid..

Un happy pilots can be VERY un productive and VERY expensive.

And Gary knows this..

 

[AA767AV8TOR]

We're very aware of market conditions," said Carl Kuwitzky, vice president of SWAPA. Higher pay is "not a top bargaining objective."

This from the pilot group of the most profitable carrier since 2001, that is also advocating flying to age 65.

Inflation is running 3%-4% per year the last two years. Anything less is a pay cut pure and simple.

AA767AV8TOR

 

[atafan]

I've heard that the pilots are writing language within this contract requiring the codeshare with ATA be discontinued.

Is there any validity to this, as far as you've been told.

 

[skiandsurf]

It seems that everyones bubble will burst at sometime.


Is it time for Southwests ride to come to a slowing halt?


(dont think you are immune to the real world)

 

[Flycatcher99]

This from the pilot group of the most profitable carrier since 2001, that is also advocating flying to age 65.

Inflation is running 3%-4% per year the last two years. Anything less is a pay cut pure and simple.

AA767AV8TOR

Actually, we already have a COL raise that occurs every September. I'll be just fine if they continue with such, and simply address the contract language issues, and tie in side letters and such.

And absolutely no PBS, by the way.

 

[Flycatcher99]

It seems that everyones bubble will burst at sometime.


Is it time for Southwests ride to come to a slowing halt?


(dont think you are immune to the real world)

I can assure you that no one here thinks we are immune to the real world. Hopefully, before people post thinly veiled speculation that hard times are ahead for SWA, they can come up with better reasons than, "Well, everyone else has had hard times, so SWA should, too."

Smacks of immature sour grapes.

 

[JethroF15]

I can assure you that no one here thinks we are immune to the real world. Hopefully, before people post thinly veiled speculation that hard times are ahead for SWA, they can come up with better reasons than, "Well, everyone else has had hard times, so SWA should, too."

Smacks of immature sour grapes.

- Fuel costs continue to rise
- Fuel hedges running out
- Other carriers bringing down costs to compete with SWA
- Other LCCs providing comparable service
- New LCCs on the way
- Ticket pricing continuing to lag higher operating costs
- Not as many "untapped" markets out there
- Etc, etc, etc

Don't get me wrong, I think SW will be fine. They have shown that when a pilot group works hand-in-hand with a competent management good things happen even in down times. But there are signs and events out there that point to a need to "tweak" the business plan to stay ahead of the pack.

 

[ivauir]

I've heard that the pilots are writing language within this contract requiring the codeshare with ATA be discontinued.

Is there any validity to this, as far as you've been told.

I have not heard this, but I do hear a lot of whinning that the codeshare sideletter is not strong enough (I haven't seen it yet)