700UW said:
Make way for the butt kissers.
Seniority rules, it is the only fair and true system.
[post="255764"][/post]
News flash, but there are many more merit based companies than there are purely seniority based industries. Is there some level of abuse there? Yes, but one can argue not to the extent of one where people are compensated strictly upon seniority. The amount of talent seniority based companies lose is much more punishing to them than the relatively small levels of butt kissing and nepotism that promote advancement on occasion in a merit based system. Then you add when there are reductions in force, you raise the overall age of your workforce. This increases average salary, increases healthcare costs, and decreases productivity.
Which brings us to the true issue that many legacy carriers have. Any industry, which like the airline biz, is highly labor intensive, will inevitably become a failing enterprise over time without significant bumps in productivity. The reason for this is that you have a labor force, which naturally, will want salary increases, whether they be merit based or COLA based. Without an associated productivity increase, you pay more for the same work. Take a flight crew. They can only fly so many hours in given month. Once they reach the limit, whether limited by regulation or CBA, over time, it costs the company more and more to produce the same unit of output.
To put it another way, lets assume I work on a factory line for ABC company. I produce 10 widgets per shift. I am paid $10 an hour to crank out those widgets, costing the company $80 a day, or $8 per widget. Let's say after 2 years, my salary is up to $12 an hour. I can still only produce 10 widgets a day, but it now costs the company $96 a day, or $9.60 a widget to pay me (not including associated increases in benefits costs like increased vacation or benefit costs to the company). Now lets say XYZ company comes in and makes the same or interchangable widget as a startup operation. Their people can only produce 10 widgets a day also, but their new hires get $8 an hour to start. It costs them $64 dollars a day or $6.40 a widget to make. Without ABC's employees becoming more productive and able to produce more than 10 widgets an hour, they will price themselves out of the market. So will XYZ at some point down the line.
Without significant advances in technology to allow more productivity, the airline business will always see older carriers fail and be replaced by younger upstarts.