NWA Pilot Strike?

[finman]

I agree that they can't easily be replaced, I just don't see how NWA can push the issue this far and not be prepared for a strike by the pilots. Why go this far just to drop the ball now. If this is indeed the case NWA is creating a lot of unnecessary friction among its employees.

There's a reason pilots make so much money; and it has nothing to do with the supply and demand of pilots or the rarity of the skillset required to be a pilot.

Due to the very nature of the position, pilots always have an upper hand in negotiations, as they know that it's logistically and operationally impossible to replace them in the case of a strike. That is why as of two years ago, of the top 100 earners at NWA, 95 of them were pilots. Right now, NWA has the most leverage it has ever had, but the pilots can still throw out the strike threat and it will carry a lot of weight. In essence, there is no way to prepare for a pilot strike, other than sending out your resume.

It can't really be considered unnecessary friction, as it is seen as cost savings that must be attained to survive. Just because a pilot strike would cause liquidation shouldn't be considered a deterrant from trying to reduce the pilot costs down to market level. It's just a different kind of negotiation with a different set of tactics. The odds are very remote that this would actually deteriorate to the point that the pilots choose to shut down NWA. They don't want to start at the bottom of the rung at some other airline that picks up the NWA void.

 

[PlayTheOdds]

There's a reason pilots make so much money; and it has nothing to do with the supply and demand of pilots or the rarity of the skillset required to be a pilot.

So the pilots pay goes against the laws of economics thus are doomed to eventually fail. It appears that they have a union that works and is able to keep such inflated pay going but even in the best of times there is a breaking point. NWA might not be able to break such a union on their own but if the airlines continue to merge and form alliances then the union could be facing a formidable stance by the carriers. There has to be a point where the carriers must say no more.

 

[AstroLounge]

767jetz is right on the mark. I work in the building where our pilots are trained, and can assure everyone that pilots can not be replaced in mass. If they walk, it's lights out. That's why they call it a murder/suicide option.

I have been in this business over 25 years and cannot believe all the sh*t that has transpired. Negotiations in business is one thing.....what Steenland and that b*st*rd Cohen are doing at NWA is unbelieveable! My thoughts are with ALL of You!

 

[Kev3188]

If this is indeed the case NWA is creating a lot of unnecessary friction among its employees.

Welcome to the NW way of doing things.....

 

[CSAR GYRENE]

Welcome to the NW way of doing things.....

One thing that eludes me in all this, is despite all the problems NW has had over the years, no matter how poorly the workers supposedly were treated, people stayed there for decades. Why on earth would anyone want to work for so long for a company that was so evil? From what I gather, it has always been a hellhole working for NW. So the question is, if it was so bad, why did so many stay for 20 or 30 years?

 

[ThirdSeatHero]

So the pilots pay goes against the laws of economics thus are doomed to eventually fail. It appears that they have a union that works and is able to keep such inflated pay going but even in the best of times there is a breaking point. NWA might not be able to break such a union on their own but if the airlines continue to merge and form alliances then the union could be facing a formidable stance by the carriers. There has to be a point where the carriers must say no more.

You need to educate yourself PTO.

Start with the requirements it takes to become an airline pilot.

From the first solo to ATP.

When you've done that prehaps you'll truly understand why pilots are paid what they are.

 

[PlayTheOdds]

There's a reason pilots make so much money; and it has nothing to do with the supply and demand of pilots or the rarity of the skillset required to be a pilot.

Thirdseat you need to reread the first sentence of finmans post.

 

[ThirdSeatHero]

Thirdseat you need to reread the first sentence of finmans post.

I read it.

He needs to educate himself as well.

I know you seem to think most everything here is union rhetoric, but open your mind. Do your own research. The info is out there, its not hard to find. Find out for yourself whats involved with becoming an airline pilot.

Not a private pilot

Not a commercial pilot

An airline pilot ATP rated.


If/when you do, you'll realize why pilots can negotiate the wages they do.

 

[PlayTheOdds]

If/when you do, you'll realize why pilots can negotiate the wages they do.

They don't negotiate anything they are slaves to their union. They will do and take or give as their union dictates.

 

[ThirdSeatHero]

They don't negotiate anything they are slaves to their union. They will do and take or give as their union dictates.

Just another tired union cliche'

Fine wallow in your ignorance.

 

[finman]

I read it.

He needs to educate himself as well.

I know you seem to think most everything here is union rhetoric, but open your mind. Do your own research. The info is out there, its not hard to find. Find out for yourself whats involved with becoming an airline pilot.

Not a private pilot

Not a commercial pilot

An airline pilot ATP rated.
If/when you do, you'll realize why pilots can negotiate the wages they do.

I don't disagree with your points, (except maybe the educate myself part, but then again, one should always be educating themselves). To be a pilot at NWA, there is extensive training and skill required, and the pilots here do demand a significant wage for the service they provide.

My point was more to the magnitude to which those wage levels had reached, which I think was driven more by their unique bargaining position rather than their marketable skills. Prior to the start of the concessions (Dec-04), pilots at NWA earned between 100K and $280K, with the average right around $190K. All I'm saying is if all contracts were scrapped and we started over and tried to determine the "market" rate that attracted the best pilots, that range would likely be significantly lower; maybe $125K average, who knows. That gap is a testament to the excellent negotiating that ALPA has done for the pilots over the years, which all you can do is take your hats off to them for.

Hopefully this clarifies my original post on the subject.

 

[RowUnderDCA]

The notion that a threat of a pilot's strike will be an effective deterrent presumes that current NWA management is committed to the business plan that would result from giving in. I'm not sure that airline executives really ARE as committed to being a hub and spoke domestic airline at all, anymore.

These executives are less likely to make an irrational business decision to remain a domestic airline today than those of years past. Especially with NW with its weak-ish domestic hubs and disconnected international system AND they are in bankruptcy.

I think that ALPA may be over estimating the executives desire NOT to chuck the whole thing.

 

[Borescope]

If the we're thinking of chucking the whole thing, then why spend the time and effort to work it out in BK. Why not just fly 'till the cash runs out and walk away. The management has a fiduciary responsibility to make this a going concern. They are just taking a page from UA, Airways and CO's BK proceedings to make good on that fiduciary responsibility. The pilots will cave, it's just how ALPA does things. Duane doesn't want to end up like Randy, without an airline to go back to.

 

[Kev3188]

I'm not sure that airline executives really ARE as committed to being a hub and spoke domestic airline at all, anymore.

....

I think that ALPA may be over estimating the executives desire NOT to chuck the whole thing.

Row--

Regarding the first point; Steenland has repeatedly stated his intent to have NW continue as a hub and spoke carrier (most recently in a video to employees on Monday.).

On the second point, well, you never know I guess.....

 

[Red Tail Bear]

I agree that they can't easily be replaced, I just don't see how NWA can push the issue this far and not be prepared for a strike by the pilots. Why go this far just to drop the ball now. If this is indeed the case NWA is creating a lot of unnecessary friction among its employees.

Like Kev 3188 said; Welcome to the NWA way of doing things. Lots of unnecessary friction!!! http://www.moneysense.ca/news/company_news...nt=D8F814I05_ap