And part of that is structural with the airline industry which is heavily seniority based, meaning that there are not the incentives to improve oneself as much as there are incentives just to "hang on"... and at the same time, there are significant barriers to movement within the industry other than within one's own company and class/craft.
The reality is that companies will often simply get rid of the highset paid or most potentially costly employees, thats why people formed unions and embraced the seniority system. It was in fact a response to the cruel unfair practices of corporations and how they treated their workers. Most aircraft mechanics continually improve as they go though their career and take pride in what they do, its the greed of corporations who expect us to produce more while they give us less that causes the conflicts you are seeing where workers come to work and do the minimum.
I completely agree. I believe DL has adopted that type of mindset fairly aggressively post bankruptcy among management and adminstrative personnel.... CO and AMR have done it more aggressively at the mgmt level for years but to be honest, few airlines do it at the frontline level.
Delta adopted the tactics of Theodore Roosevelt, they give their workers some of the benifits of being in a union without having a union.
There is nothing in what I said that implies that DL or any airline must simply fill positions. Market forces very much include skills and competencies as part of the process of establishing compensation levels.
Seems to me that most of the compensation levels (of todays airline workers)were not set by "market forces" but rather BK court rulings. Todays airline worker wages are not the result of Market Forces where capital, aligned in corporations, bargained against workers, alligned in unions, but rather "Command Forces" where the government through its courts stood on the side of Capital, against workers, and mandated that the Unions could not withdraw their labor, while the government set labor compensation rates based solely upon the desires of the airlines with no consideration for the workers needs and desires. What we are starting to see now is the backlash, new entrants arent there, despite record unemployment, the Market forces are reacting against the Command forces.
As for executive compensation, despite what some on these forums want to believe, a great deal of compensation for executives throughout corporate America is considered "at risk" which means if they don't meet certain targets, the executive will not receive the highest levels of compensation.
Yes, they may have to make do with a measly $750,000/year to $1million in base pay if they dont meet those objectives. If we dont meet what the company requires from us we are terminated, so I guess you can say all our compensation is "at risk" as well.
Part of what is happening in the US right now is that corporate profits are increasing even though the unemployment level remains stubbornly high - and that is a common phenomenon after a period of recession - when restructructuring occurs. What is lacking in the US right now is that the overall economy is not growing so there are fewer people doing larger quantities of more productive work - which depresses wages because there are an excess of highly qualified people that could be part of the labor creating new companies and growing the economy - but that part of the recovery has yet to occur in the US.
Profits and wages have an inverse relationship. Thats been a part of economic theory for over 100 years. I agree that we are seeing corporations squeeze their employees to produce more, in part with the threat that they will be replaced if they dont, but all things run their course, with us the job cuts and compensation cuts started in 2002, its run its course, there may be plenty of skilled accountants, lawyers, managers and other office workers out there at the moment but there arent a lot of A&Ps out there looking for work. We saw it with the recall at AA, Delta is seeing it, AAR is seeing it, the well has run dry. By increasing productivity while the pool of people who cant consume increases it leads to more unemployment, not less. Thats what happened in this industry, productivity increased, jobs decreased. The airlines ability to squeeze more productivity out of us through threats and intimadtion has run its course, they arent going to get any more out of us than they are now (at these wages) and they cant threaten us anymore(we dont care). We know there's no big supply of mechanics left out there. One of the few carriers out there thats been growing (sans aquisitions) is JEt Blue, they hire right out of school and they just
raised their pay in high cost areas to $38 in order to attract mechanics. No union there, just plain old "market forces" with no NMB or BK court interference.
As far as a growing economy, consumption drives the economy, as long as we keep most of the money in the hands of those who have no pent up consumption needs/desires, those that do need/desire cant meet those needs or desires by consuming. So what we need to do is tax the rich more and assist unions in getting raises for workers with pent up demand (which will draw some of the trillions these corporations are now sitting on back into the economy) and get the money in the hands of those who will drive consumption up, this can be done through higher wages (worker gains primarily through Unions and increasing minimum wage provisions)) and/or government handouts to those without jobs (UI, welfare etc-from Taxes), or government works projects (taxes) this would allow those with pent up consumption demands/desires to increase consumption, which would drive increased production, which would increase the demand for more workers which would drive down unemployment. The arguement that the way to reduce unemployment is that more
TAX cuts for Corporations and the rich are needed so the rich can invest is absurd, corporate America is already sitting on trillions of dollars, they arent short of capital so the lack of investment capital isnt an issue, yet they wont hire, why? Because there isnt enough demand to justify hiring more and they are getting increased productivity out of the workers they have, production is meeting demand, so why hire? So if we want to reduce unemployment worker productivity must be curtailed, not increased, and demand must increase. Even though the top 1% have a greater percentage of the total wealth of the nation than they've ever had they arent consuming more, and most of the other 99% cant afford to consume more, reducing the tax burden on the rich wil not help reduce unemployment, in fact it will continue to drive it higher.