Sandy Palms
I hope you are not in charge of doing any maths on board an a/c.
A simple example:
A pilot on $100,000 pa gets a pay rise of 3% on 1/1/2011 with a further increase of 3% on 1/1/2012 with the back pay to be paid on 1/1/2013. Even ignoring compounding the back pay would be $9,000.
Now the same pilot gets a 4.5% pay rise on the 1/1/2012 to cover the same period from 1/1/2011 to 1/1/2013. The back pay on 1/1/2013 is $4,500.
Surprisingly Qantas has exactly halved their back pay liability by gaining a pay freeze of 12 months plus only then giving 4.5% not 6%. The flow on effects of this grow exponentially the longer the pilot has a career ie the younger he is. This is a financial catastrophe for the pilot(s) and an enormous win for Qantas.
They also got away with a 6 month pay freeze in EBA7 Rollover with the 2010 pay rise delayed to July of that year. I will let you do the maths if the $100,000 above is multiplied by some factor in the real world!
Last edited by Just Relaxin; 18th Jan 2013 at 00:13.