Racing to the bottom.
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Racing to the bottom.
Another tragic day for professional aviation in Australia.
How sad that the only way for NJS pilots to keep their job was to reduce their own terms and conditions. I do not blame them; in the same circumstances I would most likely do the same.
My only question is, when are we going to hit rock bottom?
Pick up the newspaper and read about prospective interest rate rises due to inflationary wage pressure. Read on about various Union claims and wins for 18% over 3 years. Keep reading about the healthy airline travel figures, the highest in years.
Rumour suggests that Jetstar are having trouble crewing their aircraft due to a pilot shortage. Rumours also suggest that airlines like Emirates are calling previously passed over candidates.
So how is it that in this bullish environment pilots are either still trading off terms and conditions for a paltry 3% p.a (AIPA) rise, or worse, taking pay cuts (NJS) to simply keep their jobs.
Some may say that $110k is still too much for a 717 Captain. Consider that some Jetstar and Virginblue Captains had little more than 5 years total flying experience before achieving commands. Once these pilots achieved command then the only way to argue for pay increases are bottom line benefits.
Contrast then, pilots, who potentially after 5 years have achieved the holy grail of aviation, a jet command, with other professionals.
A law, student is looking at a minimum of 5 years to simply achieve degree status, followed by 6 months study at the college of law for admission as a Barrister or Solicitor. All this to be paid $45 - $50k. With 5 years experience they MAY be earning $110k. How many pilots achieved the necessary results to study law at Uni?
A medical student will study for 7 years before graduation, they will then need to work in the hospital system for a number of years in order to gain experience. Starting salary, $70 – 80k after 7 years of study. Would you study 7 years to fly?
Accounting, 3 years study plus for a starting salary of $40k. Maybe $110k with 5 years experience AFTER the degree and IF you are very good.
Of course many would argue that the airline pilots carry huge responsibility and are checked 4 times a year etc, etc. All true, but so are train drivers, and bus and ferry drivers (responsibility)
So when will we reach the bottom?
I suspect that things can get worse. After Ansett, I had pilots tell me that they would fly (in command) for $50k just to keep their jobs, and why not, they were working as night shelf packers at Coles for $15 per hour, $50k to keep your hands clean sounds good.
Are we at a crossroads in Australian aviation where the profession of airline pilot is being whittled away to ‘plane driver’? In its heyday, a locomotive engineer was a highly respected individual, well remunerated and considered a professional. How many of you scoffed at my earlier remark regarding train drivers?
So when will we reach the bottom?
Can we stop the race?
Is it reversible?
How sad that the only way for NJS pilots to keep their job was to reduce their own terms and conditions. I do not blame them; in the same circumstances I would most likely do the same.
My only question is, when are we going to hit rock bottom?
Pick up the newspaper and read about prospective interest rate rises due to inflationary wage pressure. Read on about various Union claims and wins for 18% over 3 years. Keep reading about the healthy airline travel figures, the highest in years.
Rumour suggests that Jetstar are having trouble crewing their aircraft due to a pilot shortage. Rumours also suggest that airlines like Emirates are calling previously passed over candidates.
So how is it that in this bullish environment pilots are either still trading off terms and conditions for a paltry 3% p.a (AIPA) rise, or worse, taking pay cuts (NJS) to simply keep their jobs.
Some may say that $110k is still too much for a 717 Captain. Consider that some Jetstar and Virginblue Captains had little more than 5 years total flying experience before achieving commands. Once these pilots achieved command then the only way to argue for pay increases are bottom line benefits.
Contrast then, pilots, who potentially after 5 years have achieved the holy grail of aviation, a jet command, with other professionals.
A law, student is looking at a minimum of 5 years to simply achieve degree status, followed by 6 months study at the college of law for admission as a Barrister or Solicitor. All this to be paid $45 - $50k. With 5 years experience they MAY be earning $110k. How many pilots achieved the necessary results to study law at Uni?
A medical student will study for 7 years before graduation, they will then need to work in the hospital system for a number of years in order to gain experience. Starting salary, $70 – 80k after 7 years of study. Would you study 7 years to fly?
Accounting, 3 years study plus for a starting salary of $40k. Maybe $110k with 5 years experience AFTER the degree and IF you are very good.
Of course many would argue that the airline pilots carry huge responsibility and are checked 4 times a year etc, etc. All true, but so are train drivers, and bus and ferry drivers (responsibility)
So when will we reach the bottom?
I suspect that things can get worse. After Ansett, I had pilots tell me that they would fly (in command) for $50k just to keep their jobs, and why not, they were working as night shelf packers at Coles for $15 per hour, $50k to keep your hands clean sounds good.
Are we at a crossroads in Australian aviation where the profession of airline pilot is being whittled away to ‘plane driver’? In its heyday, a locomotive engineer was a highly respected individual, well remunerated and considered a professional. How many of you scoffed at my earlier remark regarding train drivers?
So when will we reach the bottom?
Can we stop the race?
Is it reversible?
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In a recent Readers Digest Survey, readers were asked to rank a list of professions from most to least trusted. At the top were Firies, next Ambo's, and third were PILOTS. The list contained 25 or 30 different occupations, and lawyers were near the bottom, as were car and real estate salesmen. Fairly predictable.
In another way of posing longjohn's question, how long will it be before we as professional aviators drop down that list.
Personally, I am proud to be a trusted professional. But when guys like Ydraw come along, a yobbo with no real idea of aviation, who simply wants to "mix it up", seemingly just for the sake of it, well what chance do we really have.
And unfortunately, there are many yobbo's out there. Pick up the paper any given day and read about the "expert" accounts from some goon who watched an aeroplane come to an unfortunate end.
I don't give us much longer, because Mr and Mrs Average Yobbo don't really understand what it is that we do, but they have convinced themselves that they DO. That can only bring us down.
Combine that with our own willingness to undercut one another, jeez we really don't have long at all.
I'd be interested to hear from J* pilots on this. How does it feel to have it done to you, guys?
In another way of posing longjohn's question, how long will it be before we as professional aviators drop down that list.
Personally, I am proud to be a trusted professional. But when guys like Ydraw come along, a yobbo with no real idea of aviation, who simply wants to "mix it up", seemingly just for the sake of it, well what chance do we really have.
And unfortunately, there are many yobbo's out there. Pick up the paper any given day and read about the "expert" accounts from some goon who watched an aeroplane come to an unfortunate end.
I don't give us much longer, because Mr and Mrs Average Yobbo don't really understand what it is that we do, but they have convinced themselves that they DO. That can only bring us down.
Combine that with our own willingness to undercut one another, jeez we really don't have long at all.
I'd be interested to hear from J* pilots on this. How does it feel to have it done to you, guys?
Longjohn your figures are completely wrong. I think if you had a real look at how long it took most guys and girls to get there jet commands in VB/JQ you will find that most of us have been flying for a min 10-15 year professionally. The wages for about 98% of that group never earnt more than $15-30k in their first 5 years of flying and never got to stay at home with mummy and daddy for those 5-10 years. Unlike your other professions
I do agree with you we can't let our profession slip any lower, but no one that I can see have the balls these days to do anything about it. AS on other topics no one is willing to make any comments on our up coming EBA's
Unfortunately management knows it.
time to go drive a train!!!!
I do agree with you we can't let our profession slip any lower, but no one that I can see have the balls these days to do anything about it. AS on other topics no one is willing to make any comments on our up coming EBA's
Unfortunately management knows it.
time to go drive a train!!!!
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Unfortuantely, the profession of pilot is still a HUGELY mis-understood, and under-valued area. Take as a prime example Hawke's statement "They are nothing but glorified bus drivers".
Joe Bloggs Public hasn't a clue as to the complexities of flying RPT. They have no knowledge of what we must first do to get to where we are - approx 1 year full time flying training, followed by working in GA for a few years to clock up hours - usually 1500 before an airline will look at you. Then "school" again to be trained on the particular aircraft, then line training, base checks, route checks.... yada yada yada ad infinitum.
We have to be lawyers, meteorologists, physicists, computer programmers, mathematicians - all at the same time. No specialising here...
We have on average 100 or more people's lives to look after per flight...
And when **** happens, we have to keep cool, calm and collected whilst those around us scream and whail and pray, and figure a way to resolve the situation...
And then we go home, go to sleep, and do it all again another day.
Are we under paid? Yes.
Do the airlines care? No, since we are just glorified bus drivers. Airline accountants see us as the lowest common denominator.
Australian pilots need a union with BALLS, and a UNIFIED union at that - not all these seperate neutered factions that we have in Australia today (that really are a puppet of the airline!).
It is time Australian airline pilots stood together, not apart. No more individual contracts, no more back-stabbing.
I am not advocating a return to the AFAP (we all know that could NEVER happen!
), but it is time we stopped thinking of ourselves alone. I am NOT going to bring 1989 into this, but you MUST admit that a LOT has happened since then, to the DETRIMENT of the industry as a whole - pilots became just a signature on a contract.
Actually THINK about this before responding in some vitriolic manner that I expect from a lot here.
Joe Bloggs Public hasn't a clue as to the complexities of flying RPT. They have no knowledge of what we must first do to get to where we are - approx 1 year full time flying training, followed by working in GA for a few years to clock up hours - usually 1500 before an airline will look at you. Then "school" again to be trained on the particular aircraft, then line training, base checks, route checks.... yada yada yada ad infinitum.
We have to be lawyers, meteorologists, physicists, computer programmers, mathematicians - all at the same time. No specialising here...
We have on average 100 or more people's lives to look after per flight...
And when **** happens, we have to keep cool, calm and collected whilst those around us scream and whail and pray, and figure a way to resolve the situation...
And then we go home, go to sleep, and do it all again another day.
Are we under paid? Yes.
Do the airlines care? No, since we are just glorified bus drivers. Airline accountants see us as the lowest common denominator.
Australian pilots need a union with BALLS, and a UNIFIED union at that - not all these seperate neutered factions that we have in Australia today (that really are a puppet of the airline!).
It is time Australian airline pilots stood together, not apart. No more individual contracts, no more back-stabbing.
I am not advocating a return to the AFAP (we all know that could NEVER happen!
), but it is time we stopped thinking of ourselves alone. I am NOT going to bring 1989 into this, but you MUST admit that a LOT has happened since then, to the DETRIMENT of the industry as a whole - pilots became just a signature on a contract.Actually THINK about this before responding in some vitriolic manner that I expect from a lot here.
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IMHO it is all supply and demand.
Politics aside gentlemen:
1989 saw a mass migration of Oz pilots overseas, Group 1.
They were replaced by whatever means by Group 2.
AN went tits up and DJ filled the void with another mass training effort, Group3.
We now have THREE times the number of pilots that Australia can employ, hence the degradation of conditions.
When the airlines can't get enough crew, conditions will improve. It is happening elsewhere in the world, but our unique situation means that it will take a bit longer here.
Politics aside gentlemen:
1989 saw a mass migration of Oz pilots overseas, Group 1.
They were replaced by whatever means by Group 2.
AN went tits up and DJ filled the void with another mass training effort, Group3.
We now have THREE times the number of pilots that Australia can employ, hence the degradation of conditions.
When the airlines can't get enough crew, conditions will improve. It is happening elsewhere in the world, but our unique situation means that it will take a bit longer here.
Moderate, Modest & Mild.
A law, student is looking at a minimum of 5 years to simply achieve degree status, followed by 6 months study at the college of law for admission as a Barrister or Solicitor. All this to be paid $45 - $50k. With 5 years experience they MAY be earning $110k. How many pilots achieved the necessary results to study law at Uni?
A medical student will study for 7 years before graduation, they will then need to work in the hospital system for a number of years in order to gain experience. Starting salary, $70 – 80k after 7 years of study. Would you study 7 years to fly?
Accounting, 3 years study plus for a starting salary of $40k. Maybe $110k with 5 years experience AFTER the degree and IF you are very good.
A medical student will study for 7 years before graduation, they will then need to work in the hospital system for a number of years in order to gain experience. Starting salary, $70 – 80k after 7 years of study. Would you study 7 years to fly?
Accounting, 3 years study plus for a starting salary of $40k. Maybe $110k with 5 years experience AFTER the degree and IF you are very good.
Lawyers, doctors, and qualified accountants are almost cetainly assured of being offered a position BEFORE completion of their final exams - and if they elect to not take those offers, are able to set themselves up for not a great outlay, in their own business.
Flying is a gamble...or in many cases a gambol!!
But, from my experience - or that of one of my son's, who is engaged in one of the above - the competition is almost as cut throat.
People willing to work obscene hours for little return, whilst "The Firm" charges their work out at equally OBSCENE rates...but at the opposite end of the obscenity spectrum....until that person burns out.
Then it's "Move over, baby." - here comes up-and-coming Hotshot Mark 9,569!!
Sound familiar??
Maybe it's all a part of growing up....perhaps it's just an inherent part of the super-competitive industries in which we're all employed.
But as long as the over-supply to each vocation continues, unchecked, then things ain't gunna improve, until conditions get sooooo bad that no-one else is going to want to be a part of it!!
And AVIATION is just about at that x-road right NOW!!
(KM - "The Oracle"...note the spelling, twerb.)
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I was at a mine site out in the desert the other day, doing an induction so I could carry out the job I was there to do, and lo and behold.........there sits a young chappy I knew flew in the GA sector, doing the same induction.
I asked what he was doing there and why the induction. He replied, I have to give flying a miss. I need to eat and pay bills and just can't manage it on the wages I get from flying.
I had to leave the industry for exactly the same reason, and now that brings the total of people I know personally who have left the industry for the same reason to twelve.
There is something terribly wrong with this picture.
I asked what he was doing there and why the induction. He replied, I have to give flying a miss. I need to eat and pay bills and just can't manage it on the wages I get from flying.
I had to leave the industry for exactly the same reason, and now that brings the total of people I know personally who have left the industry for the same reason to twelve.
There is something terribly wrong with this picture.
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A question... or three
Does one get paid what the value of the job is to the company
or
Does one get paid the value of what one thinks of one's self worth
or
Does one get paid what the company can afford.
I would hope that it is a combination of all three. Is it possible to work this out from company accounts that are published? The bean counters at QF don't have a clue according to this thread. Is this true?
Does one get paid what the value of the job is to the company
or
Does one get paid the value of what one thinks of one's self worth
or
Does one get paid what the company can afford.
I would hope that it is a combination of all three. Is it possible to work this out from company accounts that are published? The bean counters at QF don't have a clue according to this thread. Is this true?
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Sorry gents, but anyone wanting to discuss the topic of this thread whilst oh so carefully avoiding any mention of that year we dare not mention is simply conducting an exercise in navel gazing, with about as much effect.
The year we dare not mention was the start of the sorry state of affairs we see today. There’s no one cause for it, but, (and I’m sorry if this offends some, but it has to be said), those pilots who took what I’ll call the path of least resistance that (or early the following) year bear a disproportionate share of the blame for the parlous state most flying careers within the industry are in today.
But, as many will hasten to inform me with varying degrees of outrage, that is all history now, and for everyone’s sake in the industry, including the short-sighted management who are throwing the proverbial baby out with the bathwater in turning the pilot’s job into one that is no longer attractive to what used to called ‘the right kind of candidate’, I really hope that someone has the charisma - (and let’s face it, the titanium balls) - to get the vast majority of Australian pilots together into one, united industrial organisation that will at least stop the rot that’s seen T & Cs on a steep down hill slope since t.y.w.d.n.m.
Sadly, I can’t see it happening, not in my lifetime at least.
The year we dare not mention was the start of the sorry state of affairs we see today. There’s no one cause for it, but, (and I’m sorry if this offends some, but it has to be said), those pilots who took what I’ll call the path of least resistance that (or early the following) year bear a disproportionate share of the blame for the parlous state most flying careers within the industry are in today.
But, as many will hasten to inform me with varying degrees of outrage, that is all history now, and for everyone’s sake in the industry, including the short-sighted management who are throwing the proverbial baby out with the bathwater in turning the pilot’s job into one that is no longer attractive to what used to called ‘the right kind of candidate’, I really hope that someone has the charisma - (and let’s face it, the titanium balls) - to get the vast majority of Australian pilots together into one, united industrial organisation that will at least stop the rot that’s seen T & Cs on a steep down hill slope since t.y.w.d.n.m.
Sadly, I can’t see it happening, not in my lifetime at least.
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Compared to other professions, pilots have it easy!
For starters, there's not much training required. You can learn to fly in fewer hours than it takes to lean the guitar or a foreign language.
There's not much experience required, either. An entry-level lawyer or accountant working 8 hours per day will gain 1,500 hours' experience in just 9 months. I wouldn't be trusting my court case to someone with 9 months' experience! Of course, flying experience is more than just engine time, but even doubling the comparison to 18 months still makes for an entry-level professional.
As Kaptain M says, many young lawyers and accountants are in professional firms where they are being paid a tiny fraction of their charge-out rate. The hours are terrible and it's little wonder that most of them drop off the treadmill to seek a better life. At least pilots get to enjoy what they are doing!
Wizard of Auz, your example doesn't just apply to pilots: I've spoken to MBAs working for major consulting firms who have been working at the mines. They are shocked to find out that the mining truck drivers are earning more than they are. Most of those MBAs end up working in industry.
Animalclub, I think your options #1 and #3 apply. I don't see any logic in people getting paid the value of their self-worth. I think there's an option #4: that people get paid just above the cost of their replacement. If a company knows someone is hard to replace, they'll pay them more. If they see that there's plenty of cheaper young people eager to jump on the bottom of the bandwagon, they'll grab them instead. This is not limited to aviation, see Kaptain M's example above. It's also why many professional firms get their 2nd year staff doing first-round job interviews of young hopefuls: to give them a stark reminde that there's plenty of people ready to take their place.
Wiley, sorry, I'm not sure what you dare wish to mention. The most obvious path of least resistance I can think of is becoming a pilot in the first place. Let's face it, flying aircraft is fun! Much more so than sitting at uni listening to boring lectures. If you are referring to people agreeing to be paid less, then in the absence of a union, it's a logical strategy otherwise they'll find themselves unemployed completely. A union would be nice, but I don't understand how it could be achieved when there are so many young people eager to do whatever it takes to go flying.
Sorry for the downer, guys, but I just wanted to offer a bit of a reality-check.
For starters, there's not much training required. You can learn to fly in fewer hours than it takes to lean the guitar or a foreign language.
There's not much experience required, either. An entry-level lawyer or accountant working 8 hours per day will gain 1,500 hours' experience in just 9 months. I wouldn't be trusting my court case to someone with 9 months' experience! Of course, flying experience is more than just engine time, but even doubling the comparison to 18 months still makes for an entry-level professional.
As Kaptain M says, many young lawyers and accountants are in professional firms where they are being paid a tiny fraction of their charge-out rate. The hours are terrible and it's little wonder that most of them drop off the treadmill to seek a better life. At least pilots get to enjoy what they are doing!
Wizard of Auz, your example doesn't just apply to pilots: I've spoken to MBAs working for major consulting firms who have been working at the mines. They are shocked to find out that the mining truck drivers are earning more than they are. Most of those MBAs end up working in industry.
Animalclub, I think your options #1 and #3 apply. I don't see any logic in people getting paid the value of their self-worth. I think there's an option #4: that people get paid just above the cost of their replacement. If a company knows someone is hard to replace, they'll pay them more. If they see that there's plenty of cheaper young people eager to jump on the bottom of the bandwagon, they'll grab them instead. This is not limited to aviation, see Kaptain M's example above. It's also why many professional firms get their 2nd year staff doing first-round job interviews of young hopefuls: to give them a stark reminde that there's plenty of people ready to take their place.
Wiley, sorry, I'm not sure what you dare wish to mention. The most obvious path of least resistance I can think of is becoming a pilot in the first place. Let's face it, flying aircraft is fun! Much more so than sitting at uni listening to boring lectures. If you are referring to people agreeing to be paid less, then in the absence of a union, it's a logical strategy otherwise they'll find themselves unemployed completely. A union would be nice, but I don't understand how it could be achieved when there are so many young people eager to do whatever it takes to go flying.
Sorry for the downer, guys, but I just wanted to offer a bit of a reality-check.
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R405, reality check? I take it that you aren't a pilot then, considering your answer. Please do some research before posting again.
Wiley, as I said in my post, TYWDNM was most assuredly the trigger. THOSE we also do not mention thought merely of themselves. The companies then denegrated the auspicous position of pilot to merely that of a contract worker - disposable labour.
I am NOT going to turn this into a 1989 argument, but if we cannot look at history and how it has shaped this industry, for better or for worse, then we are just sticking our heads in the sand and ignoring the awful truth.
As I mentioned, it is time SOMETHING UNITED was done to stem the rot endemic in the Australian airline industry.
If not, before too long, Hawke may just have his prophecy come true - we will be just glorified bus drivers.
And we all want to prove that mongrel wrong!
Wiley, as I said in my post, TYWDNM was most assuredly the trigger. THOSE we also do not mention thought merely of themselves. The companies then denegrated the auspicous position of pilot to merely that of a contract worker - disposable labour.
I am NOT going to turn this into a 1989 argument, but if we cannot look at history and how it has shaped this industry, for better or for worse, then we are just sticking our heads in the sand and ignoring the awful truth.
As I mentioned, it is time SOMETHING UNITED was done to stem the rot endemic in the Australian airline industry.
If not, before too long, Hawke may just have his prophecy come true - we will be just glorified bus drivers.
And we all want to prove that mongrel wrong!
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I'm putting on the bullet proof vest as I type this. The spiraling of terms and conditions started the day Virgin and Impulse commenced operations in Australia. This was the catalyst for the ridiculously and unsustainable cheap fares introduced into the market, with each company trying its best to a) win market share; and b) destroy the opposition, the whole while consumers are "loving it!" taking advantage of the fares while they last.
All this was coupled with Pilots (Aussie's) keen to return to live in Australia and were prepared to take and accept changes to what was once Australian industry standard ie $230K for a B737 pilot (inclusive of overtime).
Read the QF or VB balance sheet and you will see that profit from cost cutting cannot be sustained without taking casualties - be it their own or the enemy, and cannot build a sustainable future.
Australia has seen the crash before of discounters and we will see it again.
What's the solution? I'm not sure, but have popped on my thinking cap to resolve a strategy.
All this was coupled with Pilots (Aussie's) keen to return to live in Australia and were prepared to take and accept changes to what was once Australian industry standard ie $230K for a B737 pilot (inclusive of overtime).
Read the QF or VB balance sheet and you will see that profit from cost cutting cannot be sustained without taking casualties - be it their own or the enemy, and cannot build a sustainable future.
Australia has seen the crash before of discounters and we will see it again.
What's the solution? I'm not sure, but have popped on my thinking cap to resolve a strategy.
R405,
I think you talk with tongue in cheek or else you really don't know what is involved in learning to fly.
The flight time required for the various licences and ratings does not reflect the time spent in preparation for those flights nor the time spent studying for and sitting all the exams.
Also the hours for the licences are minimum requirements. Nearly all first jobs in the aviation game are considered as part of the apprenticeship for an airline job. Most airline jobs require a much higher level of experience than just the bare licence requirements.
The lawyer might have 1500 hours of time at work, but 1500 hours in the courtroom?, I think not.
To gain 1500 hours of flight time would take at least 3 years for the average person probably more.
You are not giving enough credit to the efforts required to become an experienced pilot.
I think you talk with tongue in cheek or else you really don't know what is involved in learning to fly.
The flight time required for the various licences and ratings does not reflect the time spent in preparation for those flights nor the time spent studying for and sitting all the exams.
Also the hours for the licences are minimum requirements. Nearly all first jobs in the aviation game are considered as part of the apprenticeship for an airline job. Most airline jobs require a much higher level of experience than just the bare licence requirements.
An entry-level lawyer or accountant working 8 hours per day will gain 1,500 hours' experience in just 9 months
To gain 1500 hours of flight time would take at least 3 years for the average person probably more.
You are not giving enough credit to the efforts required to become an experienced pilot.
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Rescue 1, I disagree in reference to your timeline, but otherwise agree to the greater extent.
I believe the degradation (some will call it rot) started the day the first contract was signed in 1989.
The arrival of the discount airlines did not exascerbate the situation, rather, it just continued with the trend, rather than altering it for better or for worse.
But, we are yet again digressing away from the initial topic - how do we stop the landslide?
I believe the degradation (some will call it rot) started the day the first contract was signed in 1989.
The arrival of the discount airlines did not exascerbate the situation, rather, it just continued with the trend, rather than altering it for better or for worse.
But, we are yet again digressing away from the initial topic - how do we stop the landslide?
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Bus Driver??
I noted, with some alarm, an article on the weekend about developing DRIVERLESS people moving flying machines.
I wonder how long it will be before the bean counters trot out that one to drive down the professional standing of pilots and reduce conditions offered on EBA's??
I wonder how long it will be before the bean counters trot out that one to drive down the professional standing of pilots and reduce conditions offered on EBA's??
The Salad Days are over.
...and I would suggest that globalisation has an awful lot to do with it. I think global commerce and industry is on the slippery slope to eventual implosion.
Public companies exposed to the global market need to do something to maintain/increase share price and dividends. This can only be achieved by becoming more efficient and/or increasing market share - and in the global market, market share is like the last chip on the beach amongst a thousand seagulls.
The typical CEO route is to increase efficiency, and in the case of an airline this would mean buying more efficient aircraft, increasing redundancies, or reducing pay and conditions. Any increases in market share are a bonus. Just to maintain market share in the face of widening competition is an achievement. Reducing pay and conditions in a unionised environment is difficult. The solution - spin off some different companies with reduced pay and conditions.
This is fine - but where does it end? Unfortunately, shareholders never stop baying for blood - it is the nature of the system. And employees are nothing but an inconvenience.
So the process of finding efficiencies can never end. As opposed to the good old days when businesses were privately owned, and the owners cared about human beings - the business made some money, and families had roofs over their heads.
I don't know "how" the current system will end - but logic dictates that it has to. It's just the "when" that remains to be seen.
...and I would suggest that globalisation has an awful lot to do with it. I think global commerce and industry is on the slippery slope to eventual implosion.
Public companies exposed to the global market need to do something to maintain/increase share price and dividends. This can only be achieved by becoming more efficient and/or increasing market share - and in the global market, market share is like the last chip on the beach amongst a thousand seagulls.
The typical CEO route is to increase efficiency, and in the case of an airline this would mean buying more efficient aircraft, increasing redundancies, or reducing pay and conditions. Any increases in market share are a bonus. Just to maintain market share in the face of widening competition is an achievement. Reducing pay and conditions in a unionised environment is difficult. The solution - spin off some different companies with reduced pay and conditions.
This is fine - but where does it end? Unfortunately, shareholders never stop baying for blood - it is the nature of the system. And employees are nothing but an inconvenience.
So the process of finding efficiencies can never end. As opposed to the good old days when businesses were privately owned, and the owners cared about human beings - the business made some money, and families had roofs over their heads.
I don't know "how" the current system will end - but logic dictates that it has to. It's just the "when" that remains to be seen.
