Can anyone explain why this is the case? I'm not disputing it, just interested as to why it would be cheaper to payout guys who are on much higher salaries (though you obviously reduce your payroll expenditure similarly).
The Long Haul Certified Agreement has a last on first off clause which would require enormous amounts of retraining in the event of redundancies. For example, if the company were to declare redundancies for FO's on the B767, seniority gives that FO the right to displace any junior pilot in any position.
This displacement can occur until that FO is THE MOST JUNIOR PILOT IN THE COMPANY. The time involved in retraining and the cost involved would be not insignificant.
Mr. Oldmeadow, if you are reading this, it would be great to see you attempt to emulate the success of the Kendall management in having this provision of the agreement overturned. You would get to relive 1989 without the resignations. Wouldn't that be fun! Go on, give it a go, I DARE YOU.