PPRuNe Forums - View Single Post - Jetstar pay rise. Is it enough?
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Old 22nd Feb 2008, 01:25
  #12 (permalink)  
PlankBlender
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Thumbs down aircraft - go study up on your economics

Jeeze the amount of mindless dribble that you spout is unbearable aircraft

Are you basing your BS on the one economics lecture you sat in on five years ago? Maybe you want to grab a copy of Economics For Dummies, seems you're the target audience personified

Basing a significant portion of someone's pay (i.e. monthly or at least quarterly fixed and variable salary) on profits, sales, or such like, only makes sense if a) that person's fixed income is big enough to handle normal outgoings like mortgage, bills, etc., and b) if that person actually has any control over the performance indicators that pay is based on. That then gives that person a motivation to outperform targets, and the security that if sales/performance are down across the industry, he or she will still be able to keep the house and feed the family.

Neither a) nor b) are the case for the majority of pilots (let's for a moment not look at the few 150+k captains). These deals were made for management and sales staff, they are very rare anywhere in the world for for operational roles like cabin or flight crew.

Now bonuses is a completely different thing, and there it makes sense to tie those payments to the performance of the company: if the year was good, everybody profits, if not, there is less or nothing to share. But bonuses in most industries apart from banking rarely account for large parts of the common employee's income, so they're a sweetener when all stakeholders can afford it and that's it!

Now the actual topic here is supply and demand, another topic you'll find is covered in Economics for Dummies. Global demand for pilots is going up, consequently the price for pilot labour must go up. No point to discuss any ifs or buts, it always happens, the question is just by how much, and that depends on the bargaining powers to be -- hence the need for every participant of the economy to monitor prices of their labour or of the labour they employ, and to act and react as appropriate.

Rex and other stubborn companies who're not great economists it seems, are losing pilots as their price goes up and they don't put their renumeration up. Large airlines actually employ economists to know exactly where the market price for the labour they employ is.

Draw your own conclusions, pilots, I would say ask your union what their economists are saying, and demand 5% more so you end up getting paid the actual market price.

The argument that down the line airlines won't be able to afforg higher salaries is utter dross too, read up on price elasticity of demand if you will. Air travel has increased globally even with oil prices rising to 100 US a barrel, and even 20-30% increases in pilot wages will not change that global long term trend.

Aircraft, unless you have something of substance to say and you can back it up with facts and logical arguments, please stop wasting everyone's time and honour the age-old Roman truth: "If you had kept quiet, people would still think you are intelligent."

You come across as one of those brown-nosing middle management types who are shuffling files around, but don't really understand much about their industry or for that matter anything much at all, and I think it's fair to say that by the responses you're getting here, the majority of people in your industry find your insistence on (usually ill-chosen) management mantras utterly annoying.