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Old 21st Nov 2005, 11:17
  #121 (permalink)  
 
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As a new member I back BALPA 100% - they have got it exactly right in terms of their demands. Whether we want it or not, we are facing a direct threat to the future well-being of every pilot in the company at whatever base they work from. The only credible response is to join BALPA immediately and support our excellent CC in the difficult times ahead.
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Old 21st Nov 2005, 17:49
  #122 (permalink)  
 
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Let's not under-sell ourselves. What BALPA is asking for costs out at just 12 pence per ticket.

Also, concerning DECs, and FOs not getting loyalty bonus, some of us bottom feeders are nudging 5 years with this company and were told when the loyalty bonus was originally given away, that it wouldn't affect us as upgrade times were so quick.

Well now they are not so quick and each DEC keeps loyal eJ guys further away from an upgrade and an extra 5% loyalty pay which would be a much appreciated chunk of change.

Add loyalty pay for FOs to the list please.
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Old 22nd Nov 2005, 08:14
  #123 (permalink)  
 
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Well, the results are just out, and as I have said before, it's not that they can't afford it:

Good growth reflected in 21% rise in passengers and revenues up 23%

Profits benefit from acceleration in cost reductions


Profit before tax up 11% in H2, up 9% for full year to £68m (£62m)
Reported earnings per share up by 3% to 10.7p
Passenger numbers up 21% to 29.6m with load factor improved to 85.2% from 84.5%
Total revenue per seat up 2% to £38.66
Ancillary revenue per seat ahead by 17% reflecting our continued focus in this area
Fuel cost per seat up 68% in H2, up 47% for full year
Reduction in cost base accelerated with cost per seat ex-fuel and goodwill amortisation down 7% in H2 and 4% for the year, with reductions achieved in all key areas.
Network developing rapidly with 72 new routes added in last year, giving a total of 212.
Strong growth in continental Europe, revenue up 78% with Germany on track

Commenting on the results and prospects, Ray Webster, Chief Executive, said:

“We’ve made sound progress in the year with good growth in passenger numbers and revenue. Despite the fuel price increases we’ve minimised the rise in costs and, excluding fuel, our cost base per seat has fallen by a useful 4.4%: indeed we accelerated our reduction in ex-fuel costs during the year, clearly benefiting our profits. I’m pleased also with the expansion of our network and with 72 new routes added we are in good shape for future growth.

“In the current financial year we expect to deliver capacity growth, measured by available seats, of 15%. Our strong focus on controllable costs will continue and should result in a 3-5% reduction in cost per seat, before fuel. While we anticipate a slight reduction in total revenue per seat, ancillary revenues will improve with double digit percentage growth supported by a series of new initiatives. Overall, we therefore expect to achieve mid to high single-digit percentage profit growth.”

Financial reports

So, when they say they cannot afford it, just remember the pilots of easyJet are working harder than ever to make this money for the company.
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Old 23rd Nov 2005, 01:59
  #124 (permalink)  
 
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Having just read the latest copy of 'Plane News', I was fascinated to read Ray Webster's take on the latest figures. To quote the man himself,

"Although we've made a profit it belongs to the shareholders, and they want to get a fair return on their investment. The average company on the UK stock market makes three times more profit than we do, and our current profit level is nowhere near good enough to justify long term investment by shareholders - they would be better off puting their money into better performing companies. We need long term investment to survive and grow, so we need to make more profit. As has always been the case, I trust that our people will work hard and be supportive of our approach to ensuring the successful future of the airline."

The last sentence in particular is clearly a thinly-veiled warning to the pilots over the current pay dispute and is fully in keeping with our CEO's take on the world. However plausible it would be to suggest that the profit belongs to the shareholders it is simply not the case - and the CEO knows it. Presumably if he really thought that he would feel constrained to turn down the vast bonus he will receive on his departure since that also comes from the profit - I suspect not! A part of this profit also belongs to 'our people' who created it through hard work and dedication - and that includes the pilots who are at the core of the easyjet operation.

In the statement quoted above the future of industrial relations at easyJet is revealed - big profits for the fat cats coupled to harder work and progressively smaller salaries for 'our people'. Fortunately for us, and for easyJet, Mr Webster is departing imminently and a chance exists to return to the values Stelios envisaged when he started the company. Instead of building an airline based on Southwest Airlines Ray Webster has established a company based on the classic recipie for industrial discord - corporate greed and stuffing the staff. As he has more time to contemplate life he might do well to reflect on why there is an issue of shareholder value. Maybe I could assist with a few pointers of where the money has gone. He may recall that it is not so long ago that 40 easyJet managers (RW being among them) were so taken with the deal they had done over the acquisition of GO that they awarded themselves £10 million to divide up between them. Alas, there was just not enough left for any of the easyJet pilots - such is life! Nonetheless the pilots worked progressively harder to make the company even more profitible. Clearly our managers were on the ball though as they bought 156 seater aircraft (which 98% of the time carry 150 people or less) but which require the employment of an extra cabin crew member on every flight. With 120 Airbuses that will eventually be about 600 extra cabin crew at about £9 million a year - no misuse of money there then. Then there was the decision to build 'easyLand 2' but unfortunately no one bothered to check that the floor would not hold the weight so a fortune was lost on a white (orange?) elephant. Then there was the loss of millions on the DBA fiasco - but what is a few million between friends?

If one were to to follow our CEO's argument to its logical conclusion it would seem entirely reasonable that the pilots, and indeed all other employees at easyJet should just be grateful for their jobs and rejoice at their good fortune to be governed by such great guys. Indeed the progressive reduction in their salaries to pay for all the managers' bonuses and shareholders dividends should be considered a privelege rather than a burden. The days are mercifully long gone where fat barrels sit in food-filled boardrooms looking out at the Poor House wondering how to get a few bob more out of Oliver and his mates.

It may come as a complete surprise to our managers that we actually aspire to go up in the world and not down. I know it is strange but that's just the way it is. In short if you think we will sit back and watch you line your own pockets on the back of our efforts you have another thing coming. There is a groundswell of opinion turning in favour of BALPA as the true intent of our managers to rob us blind has become clear. If you truly want 'the full co-operation of the staff in pursuit of the survival of the company', you would do well to recognise that it is the employees of easyJet who have put easyJet where it is today. The shareholders have a right to a share of the profit, but so do the employees of the company. The pilots are going to work hard at making easyJet the safest and most profitable airline in Britain - in return we expect our managers to ensure we are not rewarded for our efforts with a pay cut. We simply will not roll over and play dead while you take the fillings out our teeth. Through total incompetence our managers have set themselves on a collison course with the pilots which nobody wanted. The insulting nature of what has been offered, and the manner in which it has been done, has brought on a battle that the pilots simply cannot afford to back down from. In short we will categorically not be 'supportive of our approach' - we will fight it every step of the way.

A new broom approaches in the form of Andy Harrison, CEO designate - I just hope he has more grasp of how to make a company work than his predecessor. He will find that increasing the dismal 13.3% of the company's costs being spent on his staff will turn out to be a significantly better alternative to having a lot of aircraft sat on stand with no crews to fly them.
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Old 23rd Nov 2005, 06:14
  #125 (permalink)  
 
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NSF,

Who can disagree with any of that?

Some interesting notes. Last year Ray said: "It has been a challenging year for many of easyJet’s people and I am grateful to them for their professionalism and dedication to our values and customer service. Our success is rooted in them and their ability to adapt, innovate and act, and we look forward to many more years of continued growth." Hasn't the message to the employees changed subtely.

Furthermore, some numbers. The DBA debacle cost us £7.8m. RW's salary went up 16% to £488k. On top of that he was awarded an annual bonus of £98k, plus an option of shares which netted him £1,377k. So that's nearly £2m for Ray.

I have no issues with someone earning a lot of money, but I do have issues with that person telling me I (who have worked my arse of to make that money for him) have to accept that my derisory annual salary has to be cut in order to keep the shareholders happy and wealthy.
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Old 23rd Nov 2005, 06:44
  #126 (permalink)  
 
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Thumbs up

Yet another superb posting from NSF.

Perhaps the only other minor management cock up we haven't mentioned is the Carmen debacle. Those us us lucky enough to be working for "The great Orange Con", will remember what a mess that was. Allegedly cost millions, although extremely difficult to quantify.

Still, nobody can be accountable as Easy has a superb no blame culture, unless of course you happen to be a Pilot or Cabin Crew!.

Does make me chuckle when I see the ads for Easy on this site.

"UNIQUE OPEN CULTURE"........... Nothing could be further from the truth.

Great to see such a groundswell of support for BALPA, the likes of which I have not witnessed previously in Easy or my previous airlines.

It's great to see that the new CC are doing an excellent job thus far and enjoy my FULL support.

50 new BALPA members this week alone!. I shall be wearing my BALPA badge with pride, don't forget to order yours.
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Old 23rd Nov 2005, 07:49
  #127 (permalink)  
 
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I don't work for Easy but all of you should listen to NSF. He makes alot of sense. You boys and girls lead the way in the low cost market and when you do something everybody else follows. Stand your ground and fight for the deal you think you should have.

At the end of the day what you get dictates how all the other Airlines respond and thats why I am watching this thread closely. Your fighting for the industry not just yourselves and I thank you all for that.

Good luck guys and join BALPA now!
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Old 23rd Nov 2005, 08:40
  #128 (permalink)  
 
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Nice one NSF.

The DBA thing really stands out above all else. Someone actually sanctioned the spending of millions of Euros in order to do.......................................................... ........ nothing!!

Which management training manual did that one come out of?
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Old 23rd Nov 2005, 09:11
  #129 (permalink)  
 
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Sure, I will accept that where decisions are being taken, sometimes the wrong one will be made as well.
Nobody is infallible. However; when the wrong decision has been made I and it ends up costing a lot of money, I do not expect management to reward themselves but to take a more humble approach and waive their bonus as they have obviously not earned it!

How can anyone defend this while at the same time Cabin Crew will get laid off or at least get demoted because they've blown a slide? No captain will fly around without insurance because they're not sure if the company will not burn them at the stake when they happen to screw up.

It is good to see this all summed up like this, thanks NSF. A good reminder for everyone who hasn't joined yet what we're up against, and why it is important to stand behind BALPA on this one.
Don't forget: any payrise we get obviously doesn't come out of their bonus anyway!
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Old 23rd Nov 2005, 14:27
  #130 (permalink)  
 
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There is a persistent rumour (although I suspect it is just to tempt more to join the fray) that we in RYR (except the "home" bases) will move from 5353 to 5454, so for chrissake, do yourself a favour and don't even contemplate accepting less than 5353, otherwise you are doing our recruiters a very big favour!We in "micky-land" are watching all of this unfold with more than passing interest,and I am deeply impressed with the groundswell of BALPA support;would love to think one day we could achieve something similar ,but. . . .
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Old 23rd Nov 2005, 22:53
  #131 (permalink)  
 
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I would imagine that Ryanair will keep pretty qiet about changes to terms and conditions until the Easy debacle plays itself out. Whatever we get, O'leary just has to do marginally better and the orange floodgates will open. Much as I dislike O'leary, he is clever. Webster on the other hand is just another muppet who had surrounded himself with a virtual orange Sesame Street. The new boy in town will have his work cut out fixing this mess.
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Old 24th Nov 2005, 10:39
  #132 (permalink)  
 
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Yesterday, in his stand up speech in Lala land RW covered all the guff outlined in the year end report made to the city/shareholders. He then proceeded to cover his favourite subject of cost control stating that: 1) All office staff will have a pay freeze for three years. 2) Only the top 50 managers will be sharing large slices of performance associated bonuses and 3) Pilots and cabin crew should not be able to access bonuses as they can facilitate an increase in their pay by flying more should they wish to do so !!!!! I kid you not. He also promised shareholders that the profit return per seat sold would be increased regardless of fuel and other mandatory costs.

Today, in an e-mail to all staff, he has announced the redundancy of an estimated 50 staff. Funny how he didn't have the balls to include that in his speech yesterday. Nice way to end your tenureship. Happy Christmas to you too Ray.

Last edited by autobrake3; 24th Nov 2005 at 19:32.
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Old 24th Nov 2005, 11:13
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Either,

He hasn't got a clue about the airline he's run for the last 9 years, or

Everything he says is carefully designed to piss us off.

Maybe I should apply to the CAA to have the 900 hours rule lifted "as a fatigue reducing measure".

Ray, I hope you enjoy your retirement and find pleasure in spending the several million you took out of eJ each and every year.
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Old 24th Nov 2005, 11:37
  #134 (permalink)  
 
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Pilots and cabin crew should not be able to access bonuses as they can facilitate an increase their pay by flying more should they wish to do so
Well, being on the other side of the cockpit door as cabin crew, I would love to know how I can increase my flying when I am constantly nudging the 900 hour limit!

The sooner RW buggers off back down to NZ the better!

Incidentally, would it not be worth the EZY pilots trying to get the cabin crew on side for the pay rise negotiations, because once your pay rise has been resolved (hopefully in favour of you guys and not management) it will then be our turn to enter the negotiations. Perhaps BALPA should try to join forces with the T&G over this and the two unions try to get a pay deal that is truly acceptable for both the pilots and the cabin crew - after all, easyJet would be nothing without the 6 people onboard (or 5 on the 737) that are getting people from A to B!!!
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Old 24th Nov 2005, 13:59
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Well it looks more likely that we are going to be at loggerheads on this pay deal.

I doubt that RW will have implemented and said such a thing, only for the new CEO to come in and quash it as it was said they would be working together over the transitional period.

RW's comments as to us getting more money further illustrate how little he actually knows about what goes on in his company and just how to strike the jugular with his staff.

At least he has realised that they are overstaffed with managers over there and will be shedding some of the deadweight that seems to be abundant, but nice time to announce it Ray..

It is certainly going to be an interesting 6 months and I for one would not want to be without union support. I was previously quite happy to just watch things happen on the fence, but it seems RW et al are further locking horns with ALL their staff, not only the pilots and Cabin Crew.

Come on Guys/Girls. Lets get behind our Company Council by joining BALPA and prove to these 50 'Senior' Management that we can kick them back in the nuts..
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Old 24th Nov 2005, 14:54
  #136 (permalink)  
 
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Thumbs down

Well chaps, having just read the latest pathetic E-Mail, signalling an all out push for further cost cuts, I have now decided enough is enough. From today, I will be malking a concerted effort to leave this shower.


This company really has taken the fun out of the job!

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Old 24th Nov 2005, 14:59
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In some ways it is quite gratifying to see old Ray in his true colours - old management with old ideas bringing about old conflicts with old plans to fill his own pockets at the expense of the people who actually made the profit. In short he is yesterday's man who is shortly to be consigned to the dustbin of obscuirty. Sadly he will be leaving with a large chunk of our money in his pocket - such is the nature of corporate greed.

Webster's outrageous statements should be a huge catalyst to any wavering pilots about the need to join BALPA. There is simply no alternative. Once we have 70%+ membership we can then set about challenging the established norms of the way our negotiations are conducted and ensuring the staff share in easyJet's success. While Webster enjoys substantial financial rewards everyone else gets a pay cut - not for much longer! We have a real opportunity to challenge this. Ryanair may well make a lot more money per seat - they also spend over 15% of their takings on staff costs as opposed to 13.3% from easyJet. In other words old Ray, in keeping with his professional record to date, is barking completely up the wrong tree. Rather than take every possible opportunity to alienate his staff, he needs to recognise the enormous benefits of taking your people with you on the journey. The pilots would love to work with management to create a company where everyone benefits from easyJet's success rather than just 'Ali Baba and the 40 thieves'!

Time will tell if Andy Harrison is going to follow in his footsteps. Mind you, we are not likely to forget dear old Ray as we've just spent some more of our profit painting a huge 'Ray Webster' over the front of one of our 737s. Good job there's no waste at easyLand!

Last edited by Norman Stanley Fletcher; 24th Nov 2005 at 20:26.
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Old 24th Nov 2005, 15:00
  #138 (permalink)  
 
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Guess what, folks. Signed up to Balpa this morning, just received my confirmation signed by Bridget Emmitt.

Colleagues told me that more than 55 pilots signed up last week alone. Now its 56 (at least)....

Regards and happy landings,

C3D
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Old 24th Nov 2005, 19:31
  #139 (permalink)  
 
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As an addendum to the previous post, it appears that within 45 minutes of this mornings e-mail the first redundancies were escorted off the premises. Considering that the CAA have just finished the company audit confirming that the company is (or was) fit to hold an AOC, I wonder how such a reshuffle rests with them now. Even the CAA must see this as a pretty crafty move.

Bearing in mind the contempt with which this company treats its staff, I think they need to formally recind the statement that their staff are their most valuable asset. Clearly they are not.
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Old 24th Nov 2005, 19:43
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Congratulations to the large amount of new joiners to Balpa who have finally seen the light (and the easyJet management) for what it is. By sticking together we can exert a much larger influence and tell them what they so clearly need to know: we are serious and our claim is serious, and we will not be put aside.
Over 280 fellow pilots have left our ranks in the last 3 years, and it is time to stop the rot. Rememember, it was only when the boyz at Virgin ramped up in this way their message became heard: we deserve this rise, our conditions WILL be improved, and we will NOT take NO for an answer. Needless to say, the managers at VAA said they cannot afford it, and guess what, they somehow found the money and now everyone is happy.
We may have to go through some pain to get there, but the larger the membership, the less the pain.
The three airlines with the best T's and C's all have 90%+ membership.
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