THE DECREASING SALARY
Well the long awaited salary review is out. And it's nothing less than depressing and insulting. The analysis and perspective:
Everyone gets a 3% step. Originally this was contractual and automatic each year. The principles behind it were years of service, loyalty, experience etc. More recently it was sold as a salary increase - It's not. The basic scale has not moved since May 2011 apart from 0.5% representing about a (180 Dhs) USD 50 increase per month for a new joiner. Not impressive for half a decade. The trend also should give pause for thought for those planning to join or the many I know who are planning their departure in the next 1 to 5 years.
The 5 extra steps are long overdue but only affect around 2% of the pilots. They also introduce a problem. Those on who had just reached step 30 will smoothly go to step 31. Those who have been on step 30 for a few years have lost out. The reality was when they increased the retirement age from 60 to 65 they should have put the 5 steps on then but didn't. So our most senior and experienced captains have had slap in the face in some respects. They should actually adjust them to where they should be in the step 31 to 35 hierarchy. They should also back pay. Not likely - but the honorable thing to do.
What must be appreciated is that the salary scale has overall been decreased in real terms by stopping its advance for 5 years (apart from 0.5%) and frozen at the top. Thus a pay cut thru inflation.
Inflation in the UAE over the past 5 years:
2012 - 0.67%
2013 - 1.1%
2014 - 2.35%
2015 - 4.07%
2016 - 3.2%
These compound to 11.9% in 5 years against a 0.5% salary scale movement. Buyer beware: Consider where this might end up in another 5 years with the effects of compounding cost of living.
Flying pay increase is token. A captain averaging 75 productivity hours over the year (taking leave into account) will get an extra USD 160 (600 Dhs) per month. This is a 1.3% increase for a mid range captain salary, decreasing to 1% at the top.
For an FO this is an extra USD 100 (375) Dhs for 75 hours or a 1.25% increase on mid range FO salary.
Assuming you do a brutal 10 hours overtime (productivity) Captains will get an extra USD 95 (350 Dhs) and FO's USD 70 (250 Dhs) from last year. It's worth noting this adjustment was last done in 2010 where productivity increased by 14% in the height of recession. This increase is 6% after 6 years. UAE inflation over the same time is approx 13%
It's also worth noting that productivity is approximately half the cost per hour as a new pilot. Hence the days of 100 or more hours per month are here to stay. It is deliberately being used to keep pilot numbers low as after they reach the productivity threshold they start working at half price. This was denied vehemently at a forum but no one took the protests too seriously it seems.
I won't even go into the productivity not paid above the pro-rata threshold when leave is involved. The email on days off after leave would be simpler to word as thus: "Don't waste a bid on days off before or after leave. We plan to make you work it back without being compensated on productivity." They had an opportunity to resolve this injustice but failed to even acknowledge the problem and then notified us how they would capitalize on it. I suggest EGHQ staff should work nights after they have taken leave. Record profits - much from recovering crew leave.
The introduction of ground duty pay could have been a welcome addition if it contributed to productivity. It would have had the effect of balancing duty hours between fleets. Ultimately paying based on Duty hours would solve many issues at the airline and stop the endless fiddling. It would also indirectly resolve issues around fatigue, leave etc. Getting paid for your time at work should not be too difficult a concept.
The logic behind it is even more staggering. Last time I looked most of my turnaround time was preparing the aircraft for departure. It seems a little odd that this is paid for and recognized as work when I'm in Dammam but not when I'm in Dubai which is a far more complex airport. Why not simply pay for any ground time? Assuming 10 turnarounds in a month, a captain gets the princely sum of 750 Dhs and an FO 500 Dhs. If doing 10 turnarounds, duty time is likely to have gone up 30-50% and days off halved!
And not including ground time in the Productivity credit is even more questionable. I thought this critical time when very serious errors can be made would have been the prime candidate. But apparently not productive. It says a lot about the way we are regarded. Had it been treated as flying pay many problems would be resolved.
With regards to ground duty time I think it's a good idea in principle but badly introduced and thought through. I think it will come back to haunt them. I can't see too many delays between 50 to 60 minutes occurring... Paying for all ground time would mitigate this. The jump in pay at 60 minutes is effectively infinite.
Keeping track of remuneration is likely to cost as much in man hours as simply paying all duty at one rate. Working out what pay one should have got will also be an interesting exercise.
Delaying some of the salary increments to August is cheap. Really? After record profits it does not do the Brand any favours. Considering that this could all have been done in a couple of days with a few basic spreadsheets to model costs, the pay review should have been out before May and all effective on the 1st May. 2 years ago Flying Pay increases were delayed until July, this year until August. It appears to be a nickel-and-diming situation. Or gross negligence or inefficiency.
Why the delays to release the actual figures. A promise of caring followed by increases that don't even match inflation. And a depressing message that salaries will continue to be driven down in real terms.
I give it:
• 1 for Leadership / Teamwork / Support
• 1 for Application of (Established) Procedures
• 2 for Workload Management
• 1 for Problem Solving and Decision Making
• 2 for Communications
I'm glad I don't have to grade the hard skills.
There it is. Until next year. Fly safe.