Morning apache.
wethereyet, very true I'm afraid.
To better understand the mindset of management in all of this, it may be prudent to take a look at history and how the pilot groups of both REX and their predecessors have been swindled over the years.
- 1995: Hazelton Airlines embarks on a disasterous attempt to break into the domestic market by inaugarating a Sydney-Geelong service. It fails and after 12 months is discontinued after a loss of $2.5 mil, and the retrenchment of some 20 pilots! At the 1996 EBA negotiation management request a pay freeze of 2 years in order to help the company get back on it's feet. An undertaking was made, that during the next EBA, the 2 years will be made up, ie: 6% will be on the table + CPI for the next 2 years + whatever productivity offsets can be negotiated. The pilot group agrees.
- 1998: At the beginning of the EBA negotiations the pilot representatives remind the current management of their pledge. Their answer, "That was made by the previous management and as such has no relevance today"! The pilot reps reminded the General Manager that he was in fact the deputy at the previous EBA. He is unmoved and refuses to take responsibility for the aforementioned pledge. Furthermore the company position is that it may consider a CPI rise but only if certain working conditions are given up! The offer made without "productivity offsets" was approx 1% below the then CPI. Needless to say the negotiations were difficult and heated, and when told that the offer made by the company would not be accepted, the General manager at the time bypassed the negotiating team and put the company's proposal direct to the pilot group. It was rejected almost by 100%. The final outcome, after nearly 8 months of unmittigated bullsh!t an EBA that provided 0.5% P/A above the then CPI with concessions on T&C's was agreed upon. So, by the end of the 1998 agreement, the Hazelton pilot was approx 5% worse off and had given up long standing T&C's into the bargain.
- 2000: The same pattern repeats itself. The outcome? an EBA that only keeps place with CPI. Hazelton pilots are still approx 5% behind.
- 2001: Ansett collapses taking with it Hazelton, Kendall, Aeropelican, and Skywest. 12 months of Administration follow.
- 2002: The Kendell and Hazelton business's are combined to become REX. The new CEO picks the eyes out of both EBA's, slashes conditions and adopts the lower of the two pay scales, (Hazelton pilots were paid approx 5% less than their Kendall counterparts) so guess which one he picked. He tells the pilot group in no uncertain terms to "Take it or leave it". Because of a rather infamous civil war within the Kendall camp due to the displacement of the mostly senior CRJ pilots, the remaining Kendall group endorse the EBA. The Hazelton pilot group almost unaminously reject it. Having absolutely no idea of industrial law the CEO pronounces the new REX EBA a done deal. Of course the Industrial Relations commision had other ideas! The CEO was this time forced to negotiate. the company asked for the assistance of the pilot group in helping it through this early period, and you guessed it, requested a pay freeze untill the 2005 EBA, with an undertaking to "make good at the next EBA! Sound familiar. Certain T&C's were placed back on the table, nothing new of course, simply rights that were swept away during the period of uncertainty. After a period of complex negotiation, the 2002 EBA was finally certified. The result, REX pilots will now be approx 14% worse of in terms of pay by the end of the EBA in 2005! That is based on what Hazelton pilots should have been paid. Compared to their higher paid Kendall and Eastern counterparts, the figure would be closer to 20%!
- 2005: REX offer a wage rise approx 1% below the current CPI. They do however introduce a profit sharing, and share gift program. The sucess of this is very much dependant on the performance of the company as a whole. As a result the pledge by the previous management to make good the approx 9% due to the wage freeze was discounted as Having no relevance as it was made by a previous management! I'll say one thing for the bastards, they're consistant! The EBA was finally accepted and as a result the base salary of REX pilots by the end of the 2005 EBA is now approx 17% below what a Hazelton pilot could have expected if their wages had simply kept pace with CPI since 1995!!
- 2008: So hear we are today. I have been told that the REXPC and the AFAP heve submitted a progressive EBA proposal that will amongst other things help to mitigate the loss of irreplacable crews and at the same time provide valuable lifestyle benefits for existing and future pilots. Whilst I sincerely applaude their efforts and integrity, I'm afraid they are dealing with a beast that has proven over many years to be unworthy of that level of dedication.
My prediction, and I do hope I'm wrong: The Company will offer a similar package to the 2005 EBA. There will be no acceptance of responsibility for the
real reduction in wages over the last decade or so. The mantra of "We cannot afford more" and "we cannot compete with the domestic airlines" will fortify them against any moral or logical arguement put forward by the negotiating team. The dedicated members of the REXPC (unpaid for their labour) will be forced to submit a substandard document to the pilot group for a vote. As the majority of current REX pilots probably do not see themselves with the company in 12 months time, the proposal will more than likely get up. Management, cloisted in their ivory tower, and ignorent of the real issues, will no doubt be patting themselves on the back. As for the REXPC and the rest of REX's largest employee group, the only option open to them will be Take it or leave it! Sadly for REX, many will in fact choose to leave it.