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Old 18th May 2003, 22:11
  #38 (permalink)  
Y0SSARIAN
 
Join Date: May 2003
Location: Aus
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There are two separate problems posed on this thread:

1) That far too many pilots in GA are currently working for less than the award.

2) That the GA pilot's award pay is hopelessly inadequate given the skills, responsibilities and qualifications required.

We can not hope to address issue (2) unless issue (1) is first taken care of.
What use is there in having an award saying a 210 driver must be paid $35 000, when half the 210 drivers in country are currently getting nowhere near the award pay of $28 000 (approx)? Only when award pay rates are universally accepted by (or forced upon) employers will there be any point in looking at the inadequacies of award pay itself. This is also the principal behind low award rates themselves, which tend to follow market expectations based on supply/demand for pilots and the strength of our negotiating position.

So, how can we pilots attempt to tackle problem no 1?

a) Pilot's responsibility- Don't work for less than the award and employers will have to lift their game and pay award rates.

b) Petition the government bodies responsible to crackdown on operators who underpay.

c) Collective action- don’t expect individuals to martyr themselves in an impossible struggle against the status quo. Join or form a union that is prepared and able to take action.

Option a) is unrealistic. Unless you have very good contacts it is almost impossible to find an entry level commercial job that pays the award. In my state of the five or so ‘entry level’ operators only one pays award - and you need to have trained there to get the job. Trying to turn the whole problem around onto the blokes right down the bottom struggling to find that ‘first job’ is deferring the problem to those least empowered to act.

Option b) GA is as I understand it covered by a federal award which means that the government body responsible is under the control of none other than the Federal Liberal Party. The Liberals have consistently taken every measure possible to divest workers of their rights since holding power. It would be naive of any of us to expect assistance for our cause here (given Fed. Labor’s track record I doubt they would be much more helpful).
Cracking down on individual operators may work when the operator is financially robust, otherwise he’ll simply be put out of business and replaced by another under award paying operator.
Incidentally, an award does apply to all workers whose job function is substantially similar to that described in the award irrespective of whether their employer is a signatory or not, the only exception being if the employer has a formally ratified enterprise agreement.
This means that if you are employed by someone, and regardless of your job title you are required to perform the duties of a Commercial Pilot, then the award applies to you. No dodgy “commission based pay” or “verbal contract” abrogates your right to award pay, at least that’s what the law says.

Option c) Since technically at least the law is on our side, fighting collectively for our rights through a union is the most logical method of attacking the problem.
-Firstly we must find a union willing to take up the issue or form one if none is available (seeking comment from the AFAP here).
-Next, we must promote union membership throughout the pilot community, including to those down the bottom of the employment ladder and unemployed CPL’s.
-Once this is done it will be a relatively simple task to compile a list of all those operators paying less than award. The next step is the decisive one.
-The union will negotiate with the concerned operators and demand that as of a certain date all pilots will be paid the award. The union may choose to offer amnesty to those that comply with the demand and will initiate legal action against the others. Because all operators would be notified en masse no particular operator will get shafted while everyone else in the area keeps making a profit. Operators would be given sufficient time to adjust their prices to take into account award wages before action was initiated. No excuses.

Pilots need to remember that there are a lot of operators out there who would have no problem paying award, except that they can’t compete with the guys next door with pilots working for next to nothing.

Can the industry afford this? In the case of CHTR it’s clear cut as the market as a whole is relatively inelastic. Consider a 3 hr CHTR C-210 billed at $385/hr ($350 plus GST). Approximate breakdown p/h:
Now
A/C Dry $150
Fuel $70
Pilot $30 (common ‘under award payment’)
Landings $15
Operator’s Margin $85 (nothing wrong here)
Total $350 plus GST
CHTR Quote $1050 plus GST

Pay the pilot an award wage (say $50/hr) cost becomes:
Total $370/hr plus GST
CHTR Quote $1110 plus GST

This means that we’re talking about less than a 6% increase in cost over the board to cover award wages!!! I challenge any operator to tell me that his market would collapse if industry rates went up by 6%. The customers might utter a word or two but would forget about it in a month. It’s not like they’re going to drive or catch a bus instead because of the increase!!!
Air charter services are demand inelastic precisely because they can’t be easily replaced by another product. If we get paid the award the earth will not collapse and jobs will not be lost because a pilot’s pay only makes up a small percentage of total cost at the best of times.

The situation for instruction is slightly different because it’s relatively more labour cost intensive, however the same principals apply. An across the board price rise will be accepted by customers- provided that it’s reasonable and consistent amongst competitors.

As I see it we have two options, Live on our feet, Collectivise, Enforce the award then improve it or stay on our knees and keep those pineapples coming!!!

The choice is ours.
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