Industrial Action? The Case For....
Recently I had the pleasure of a long lunch with an old friend from University. Interestingly, this individual now occupies a position as a senior IR adviser with what could only be regarded as an EMPLOYER friendly organisation. The substance of the discussion was, I believe, worthy of posting.
He was aware of much of the recent history of pilot industrial relations, having read many relevant journal articles. He was specifically aware of the major issues that exist - seniority, limited number of large employers, pilot numbers/shortage, opportunities overseas, IR history (ie '89), etc, and in processing the information he arrived at certain very interesting conlusions:
- Seniority will always stifle the natural operation of the market. The requirement for new joiners or returnees to start at the bottom effectively impinges on horizontal movement between major airlines. As such, even in times of pilot shortage, salaries are prevented from rising in the enormous amounts that sometimes occur in other industries (ie mining, IT in the 90's, etc) because employers do not have to increase salaries to retain skilled labour.
- The industry is living in fear of '89. He is staggered that given the duplicity and deceit showed by management in a range of different airlines, no major pilot group has taken significant industrial action.
- Today is very different from 89. The major companies are publicly listed, so it would not be likely they could get into bed with the government and have their way. The precedent would be too dangerous. Their is no massive surplus overseas ready to come to Australia at the conditions on offer. And management, despite the tough talk, are absolutely petrified of lost productivity. If you don't believe me read the Dixon letter.
- Any action taken by irreplaceable skilled employees would lead to an immediate collapse in share prices. The pressure placed on management by institutional investors, and also associated damaged industries, would ensure a rapid resolution on terms favourable to the employee.
- Action must be taken during the window of opportunity. If you don't make the most of it now, then under the new IR laws, when the pendulum swings back to management you will get screwed and there is nothing you can do about it.
I believe it will only take one bout of successful industrial action by one group of pilots, and the rest of the industry will be emboldened, and the flow on effects enormous.
NJS pilots are actually in an industry defining postion. It is not their job to do our dirty work, but if they do take action and damage the mining industry in the process, the cost of giving them their due will pale into insignificance to the losses those companies face. Enough pressure will be applied to ensure a swift resolution in their favour.
OI