jimntx
Veteran
That, in essence, is exactly what happened. The company said we are only going to pay 15.6% less per f/a per hr than we currently pay, and if you do not accept this pay rate, we are going to file for bankruptcy. (Whether they actually would is not the issue.) So, right before I was furloughed, I received a cut in pay to $22.10/hr.orwell said:So, if AA is suddenly - say, when concessions are needed - "willing" to pay less for a particular job function, I guess it then stands to reason, per your argument, that the value of said job function is indeed worth the new, lower figure? I mean, your formula must work both ways?
Somehow, I doubt many will agree it does, though.
The company could easily make a case for an even lower wage by advertising for new hire flight attendants at $15/hr, and I would be willing to bet that they would have to hold the open house at the Dallas World Trade Center main hall to accommodate the crowds of applicants. Now, don't get your knickers in a twist. I'm well aware that such an action would be illegal under the contract, and because they can not hire from the outside as long as there are furloughees, it would be a violation of Federal labor laws to advertise a non-existent job opening. I'm just making a point that there are a lot of people out there willing to do my job for less than what I was being paid.
For that matter the company could advertise the job at $10/hr and when it didn't get any response, it could apply under Shrub's guest worker program to bring in foreigners to do the job because "Americans are not willing to work this job for the salary we are able to pay."
orwell said:The truth is, there is in fact a "real" value to any job. If a person is producing less/goods services than what they're being paid, and this is widespread across a company, the company will in fact lose money. In some jobs it's easy to calculate it, with others it's not..
To be more precise, it's easy to calculate in manufacturing jobs where you have a product that costs x dollars to produce (minus the cost of labor) and which you can sell for x dollars more. Somewhere in that range between cost of production and selling price you have to fit profit margin and cost of labor.
In service jobs--which constitute the great majority of our economy today--it's almost impossible to calculate. Is a unionized hotel maid in NYC making $15/hr intrinsically more productive than a non-unionized hotel maid in Dallas making minimum wage. No. It's just that the employer in NYC must be willing to pay the higher wage in order to get someone do the job.
It's really a classic supply and demand problem from economics 101. In today's economy the supply of workers exceeds the demand for workers to a sufficient degree to push down the price employers are willing to pay. That's why a CBA is of such importance to the unionized work groups right now. It prevents the company from simply hiring new workers at a lower wage and getting rid of the higher paid workers.