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THE DECREASING SALARY

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THE DECREASING SALARY

Old 2nd Jun 2016, 12:35
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Join Date: Jun 2000
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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.
Pixy is offline  
Old 2nd Jun 2016, 14:08
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Awesome post Pixy and so true!!
puff m'call is offline  
Old 2nd Jun 2016, 16:48
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Pixy nails it again!
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Old 2nd Jun 2016, 18:24
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What a negative post !! nothing seems to make you happy ....
plt330 is offline  
Old 2nd Jun 2016, 18:39
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This is the same in Oman, cost of living going higher, fuel and food prices higher month after month too.
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Old 2nd Jun 2016, 19:01
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Originally Posted by plt330 View Post
What a negative post !! nothing seems to make you happy ....
The truth hurts ! Right ?
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Old 2nd Jun 2016, 19:15
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Kapitanleutnant
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Plt330..

So... you're happy with the pay review I take it?
You're happy with a grand total of 95 USD effective increase in your pay?
You're happy with the rest of it all?

There's always someone in the crowd with a skewed look at the same thing most others agree on.

K
 
Old 2nd Jun 2016, 19:15
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Join Date: Apr 2013
Location: new york
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Cost of living in united states is going up to , house pricing is increased 15% from last year but the salary did not raise and no one is complaining .

Why do you think they have to increase salary when pther things are get more expensive?
mmorel is offline  
Old 2nd Jun 2016, 19:22
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So you obviously enjoy seeing your standard of living going down every year.
gardenshed is online now  
Old 2nd Jun 2016, 19:49
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They don't have to increase the salary because things get more expensive. They have to increase the salary because they need to get 600 pilots a year to move to Dubai- and maybe even persuade some of the ones who are already there to stay. There was a nod to the retention problem by increasing the number of payscale steps to 35.
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Old 2nd Jun 2016, 20:07
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250 newbies in the first 5 months.
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Old 2nd Jun 2016, 20:55
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Response

I shouldn't really engage but what else is there to do when you can't sleep on a short layover many time zones different..

plt300

Not sure of your point. It's an analysis that's all. Data driven facts. If you have a better one then please let's hear it but I think the figures stack up. You got some more money so you're delighted. That seems a little pedestrian. I suspect you hardly understand the nuances. But please appreciate that I can hardly be joyous when aviation salaries, in real terms, are falling, year after year. I have enough pride in the profession not to condone that. Nor can I claim satisfaction when an opportunity to correct, make equitable and simplify a convoluted remuneration scheme is lost. Especially when it could probably be done at minimal cost, with less fatigue, more transparently and result in better satisfaction for all, Company included. I see it as disappointing.

mmorel

I'm not sure what to say to your comment. Following your logic, can I assume that year on year as things get more expensive due to consumer inflation that you will be happy with the same salary? How long until you actually do complain? If you think no one in the US is complaining then you've been watching too much CNN. Take your comment to its ultimate conclusion and you will be living on a bowl of rice a day. Wasn't that that the Chinese model? Are you are a closet communist? Perhaps you are simply a troll. If it's good enough for you then you will wind up hungry but happy. But it's not good enough for me. I don't believe it's unreasonable for salaries to keep up with cost of living. Especially within a record profit company.

Off to bed. Thanks for the entertainment. I'll let it be now.
Pixy is offline  
Old 2nd Jun 2016, 21:08
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I currently work for an orange low cost. Last time I checked the Captain's basic salary was 36140DHS. If I understood well from the above there are are 35 pay points, 1 for each year of service increasing at 3% each one. So 36140DHS increases by 3% every year?
stable_checked is online now  
Old 2nd Jun 2016, 21:11
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K9
 
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Location: Dubai, UAE
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Another well researched post Pixy.

Ignore the trolls...It is not worth the effort.

To be fair to that lot in the bouncy castle, I think some of them try and probably share your sentiments. But until a few short sighted individuals move on things can only change slowly or under duress. I suspect that's why it all took so long to come out in bits and pieces.

Keep the posts coming.
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Old 3rd Jun 2016, 00:10
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Problem is that Dubai is broke and Emirates needs Pilots. So they tried, in their infinite arrogance, to do both: Making it look like they increase pay to attract new joiners and keep geezers around a few more years as well as secure the profit payments to the Dubai Government by not ACTUALLY paying that much more.

They've failed at either goal.

Posts like these are pretty good at documenting that the "pay review" is actually just a smoke and mirror exercise at pretending to increase the pay significantly while actually not doing much at all.

Going through my rosters over the last year and parse how many turns, DXB sign-ins and ground delays and diversion I've had, I've calculated that I'd get about a 5000 dhs increase PER YEAR... Which comes out to about 1% pay raise.

Not enough to continue to risk my medical for this... So, yeah. Bye bye.

Only question is how many potential new joiners are going to be deterred by this?
InnocentBystander is offline  
Old 3rd Jun 2016, 01:57
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But more importantly, I'm not feeling nutured...
Bring Back The Biff is offline  
Old 3rd Jun 2016, 03:12
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BBTB....But more importantly, I'm not feeling nutured...

Did you leave out an "E" or an "R" ?
Yarra is offline  
Old 3rd Jun 2016, 04:29
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Haha perhaps we have all been neutered.
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Old 3rd Jun 2016, 04:56
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Outstanding post Pixy.
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Old 3rd Jun 2016, 05:22
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So you become a so called 'troll' when you disagree with the negative masses?
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