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Why would Americans choose CX over UPS?

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Why would Americans choose CX over UPS?

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Old 19th Sep 2006, 04:30
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Why would Americans choose CX over UPS?

This is a press release concerning the recently signed contract between UPS and it's pilots. Fedex also just signed a very similar deal. Why would ANY pilot from the US bother with all the that working for CX entails???:

New Contract Moves UPS Pilots Further Ahead Of Airline Peers

UPS' pilots union believes the contract deal its members ratified last week will join the new FedEx contract as the gold standard for U.S. airline pilots.

Although some clauses in the FedEx contract will be better than in the UPS contract -- and vice versa -- the two contracts will be very similar in overall value, an Independent Pilots Association spokesman said. As more details from these two contracts emerge, it is clear that the deals have moved the cargo carriers further ahead of passenger airlines in terms of pilot compensation.

UPS was already at the top of the ladder for career value of pilot contracts, said Kit Darby, president of AIR, Inc. and pilot hiring expert. Industry hourly rates are relatively tightly grouped, and some airlines have higher rates than UPS for the most senior pilots. But a higher percentage of UPS pilots earn the top rate, and retirement benefits are also higher, giving UPS pilots a more lucrative career value, Darby said.

The express carriers are in an excellent position now, and this should remain true for the foreseeable future, said Darby. They are well-placed to take advantage of rapid market growth and have experienced few of the setbacks that have plagued passenger carriers in recent years. The cargo contracts are "a tangible statement of how a consolidated industry like air express expects to easily pass through that magnitude of increased [labor] cost," said airline analyst Robert Mann, of R.W. Mann and Co.

IPA estimates that the new contract is worth $1.5 billion more than the current deal, based on compensation and benefits over the four-year term.

The UPS contract deal will see captains with more than 12 years' experience -- which accounts for almost all UPS' captains -- receive an initial 17.7% pay raise and a $60,000 signing bonus. First officers will see 18%-25.8% pay raises with an initial signing bonus of $40,000. There will also be a 3% pay raise every January through 2011. Airline analysts believe the FedEx deal includes an initial pay increase averaging about 9% and annual raises of 3%.

Aside from the wage increases, IPA said new job protection clauses were a high priority for UPS pilots. The union gained a guarantee that all flying between international destinations will be performed by UPS pilots and will not be contracted out. The IPA spokesman admitted the union had seen a small level of outsourced international flying, but it was enough to make UPS pilots concerned. Benefits and scheduling were also improved, although pilots did make some health benefit concessions, the union spokesman said.
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Old 19th Sep 2006, 16:11
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The line is forming! UPS mostly now wants people with the type experinence the CX pilot's have. Concessionary agreements just will not cut it and I believe you will see a lot of pilot's leave CX for UPS or Fed Ex. CX has already been having trouble getting quality and qualified people to apply. In addition the furloughess I believe will go home as issues like command and rostering and pay are just not being addressed. Why stay or even come here?
 
Old 19th Sep 2006, 16:52
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It's really sad because CX is a great airline with a few bad apples in the wrong place. How they continue to allow the Star Chamber to fail a command trainee on a 3-bar ride after he passes the ride amazes me. They should not have the power to turn a pass into a fail but ONLY add sectors if they have a valid concern. But sadly, they won't learn until many leave and they start losing money with AC sitting.

CX loss is UPS's gain.
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