wings396 said:
I read this article yesterday. I would really love to know why management always compares our wages to Jet Blue? How about comparing ours to Southwest for a change....lower fares...higher wages, and they even make a profit. Since Jet Blue has only been around for 2-3 years, it makes sense that their average pay for a
C/S or Fleet employee is $9 an hour. They get $9, and many of us with 20+ years get Expressed at $13....I would be willing to be they will make a hell of a lot more after 20 years with Jet Blue.
Airways does that for PR purposes. Look at one of the big cost differentials. Employees per mailine aircraft. US = 100/plane vs Jet Blue at 70/plane. So even if all of the labor rates were 10% less at US, US would still operate at a 20% cost premium.
Not turn it around to the real world, and you have in one instance $9/hr (JB) vs $13/hr for US which is almost exactly 30% more in direct labor cost. Look at the Outsourcing cost vs in house cost for mtc. another 20 to 30% differential. And so it goes.
Now after all of that factor in the roughly 30% more employees earning more and it gives you an idea at least as to why it seems like you're being chased around the room by a mad man with an axe.
When you have a cost structure that is taht far out of whack it is immpossible to sustain a viable business in an industry that is mature and threatened by new discount carriers. Also ask yourself if you would work under SWA's work rules?