MaxReheat
15th Aug 2005, 13:34
I read on the back page of Flight that pay for contract pilots has risen by 20% over the past 6 months due to the increasing shortage of flightcrew. Just reward for the 'risks' (?) of contract work or are they profitting at the expense of the permanent workforce? Discuss.:p
RAT 5
15th Aug 2005, 22:32
It was my experience, over 10 years ago, that on a European long-haul contract, rates were = the gross of local fulltime crews. The savings were on all the extra payments the airline had to pay the local government for its own crews & pernsion premiums. Also we could work to national maximums, whereas local crews had capping agreements. That, and we could be laid off at short notice as markets changed.
Shortly afterwards, in the light of some bankruptcies, the rates came down = the net pay of local crews. However, no fringe benefits were paid. The market forces were in charge, as any job was sought, being better than no job. Pilots became very devalued, especially as the local crews had received annual rises.
Contract crews became very cheap options for airlines.
Now, in the shortage, rates are creeping up, but are still way behind 10 years ago. If you compare the best contract rates in Europe, pay your taxes as you legally should, then compare your net to the fulltime crews net, who also enjoy many fringe benefits and often less hours, then it is still a mighty rip off. The airlines are milking it.
Market forces are still in charge. It seems India is having a real competition. Many airlines chasing the same pilots. Now, perhaps, market forces are coming onto our side as the airlines jockey to find out just how high they need to bid to attract available crews, especially captains.
All agencies are searching for experienced type rated F/O's. They do not exsist, as any with experience are employeed and unwilling to take the plunge of the uncertain world of contracts. If they stay put they can make command in a couple of years. It will be interesting times watching to see what the solution to the F/O shortage will throw up.