Not so. If a company is profitable that entity will pay what it
needs to (and no more) to get the right pilots - if those pilots suddenly become too expensive because, for arguments sake the Govt passes some new laws, and the company has no ability to raise its revenue in line with those raised costs (limited market) then it becomes unprofitable unless fewer pilots work harder. If they were all already flying 900hrs/annum then they can't work harder so maybe the company goes broke and none of them have a job.
Would the Qantas group employ
as many pilots as they do if everyone was on the mainline award? Can't see it - I am not saying they couldn't pay
every pilot employed the current mainline award I am saying there would be a shedload less pilots employed in the QF group flying bigger aeroplanes. And its no use saying "Its only 5$/ticket". A year or so back when oil went to $150/bbl and the airlines put fuel surcharges on tickets fwd booking for J* and
VB dried up - LLC pax went back to the busses/didn't travel and holidayed at home.
Same in GA - you could argue, and I would agree, that there are too many pilots and too many GA companies (started often by pilots who couldn't, for whatever reason, make it to an airline job) chasing limited work and that leads to lower entry level wages (and returns on investment for the owners). There are limited ways this situation can change - fewer companies employing FEWER pilots flying fewer aeroplane commanding a better return on capital from the limited market is about the only way - how that is achieved is interesting. I think the only way is raised barriers to entry to the profession (higher standards for pilots). You could of course legislate a 50% increase in the GA award and the FEWER remaining pilots in the remaining companies would be very happy indeed but there is NO WAY KNOWN that there would still be the current numbers of pilots in the industry. At least raising the bar, standards wise, until few people can pass culls the herd down to truly motivated individuals - a 50% increase in the award would simply raise the number of unemployed pilots because only the very best would get the fewer jobs. Its all about incentives and what market signals you want to send.
At some wage level jobs evaporate and it varies from industry to industry and within industries. The only way for the system to function is through millions of people interacting with 10s of 1000s of companies and EVERYONE acting as free agents in their own self interest (with a good umpire and a few rules). Otherwise we return to the 70s and endless strikes/pattern bargaining.
An economy works the same way - millions of people making billions of decisions based on self interest that collectively send signals to 'the market' that is populated by companies that allocate capital to make stuff that meets the needs of the millions of people.
That is why socialism/communism doesn't work - because 4 people cannot make decisions that come even CLOSE to being as good as the millions do - example, pink batts.
That is why Rudd/Labor worried me 2 years ago and should scare everyone witless now.