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Old 13th November 2004 | 10:43
  #18 (permalink)  
Scottie
 
Joined: Jun 2001
Posts: 436
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From: Peoples Republic of EU
BigBusDriver06 that's a very one sided and gloomy view of the marketplace! Hence my earlier reference to the samaratans!!!

However there is an alternative view to yours!

Bringing these new states into the EU does present some problems. In the short term from our perspective it may look gloomy, long term I think the future is bright.

All of a sudden the EU has new states where the costs of production are lower. So Capital will freely move into these areas, therebye creating jobs, creating wealth. As Capital flows into these areas eventually there'll be a skills shortage and salaries will rise to attract skilled individuals (supply and demand). You can't keep peoples wages suppressed as we know what happens when you do. People move on to better paid work or they strike. Eventually some Capital will find it to expensive to operate in these new EU members and Capital will move on, either in the EU or outsourcing to places like India but living standards will have been raised.

However the problem for business is that these new areas create a wealth of opportunity so they're moving in. Any company who moves in quickly has a few years advantage on salaries but any skill that is in demand will command a good salary. Over time it will be as expensive to employ someone in these new states as it will be in the old states. They're not sweat shops as they've now got the employee legislation of the EU to fall back on.

In aviation I don't think we have too much to worry about. I think the main worry is for the existing airlines in the new EU states. Most are now flying Western equipment and have a pool of well qualified individuals who now have the opportunity of freely travelling and offering their labour to a better paying employer. These companies can either replace the employee or stop the attrition rate by paying more to keep people.

Is there a pool of thousands of Eastern European pilots waiting to undercut us? I'd be interested to find out. Most would like our jobs and our salaries.

I take your point that employees can live anywhere in the EU and can be HOTAC'ed or they can do it all from their end but I've not seen or heard of any airline so far rising to the challenge. At a time when easyJet and Ryanair are racing through Europe trying to build strong foundations in the market place a new comer, even with lower costs, is going to find it hard to compete.

MyTravel have been outsourcing for years, whether this downsizing has a hidden agenda I don't know. Personally I think it's because they're in financial difficulties because more and more of us are not booking package holidays. MyTravels problems are the LoCo's gain.......

One last thing though, if Jet2 pays so poorly (giving them a competitive advantage), £50k for Captains versus £80k at eJ and say £100k at BA why hasn't Jet2 managed to take over aviation in the UK?

Interesting times ahead.

Last edited by Scottie; 13th November 2004 at 11:01.
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