I am really an outsider here, working in Computer Software sales, but I do have a strong interest in my favorite 'frills' airlines surviving.
How do you guys feel about a variable pay scheme ?
In the IT business many made a furtune in 98-99, but at the moment revenue is quite low - and our income follows revenue.
I do feel however, that a nice base pay combined with a variable pay depending on company financial results is the most fair way to compensate those who are responsible for generating revenue.
Rather than asking say pilots to accept a lower wage in order to reduce costs, a new scheme with an acceptable base + an unlimited bonus depending on profit should fit both parties.
It would be motivating for all, making unions think twice before increasing cost by demanding extra headcounts for a given task.
At the same time, wages would automatically go up, when profit is back - without the requirement for new wage negotiations.
If base pay is say 65% and variable pay 35%, the bonus would automatically increase with seniority and the variable pay would not be so large that you are at serious fincancial risk if you miss the bonus one year.
Typically in the IT industry, bonus is increased by accelerator factors, giving much more than a linear increase in bonus when profit exceeds a set target.
Good luck
Regards
Michael