As the airlines and the media run around saying how labor costs are killing the airlines the challenge for us as workers, since we cant count on the TWU and all the resources they have at the AFL-CIO to do it, is to seperate the bull from the facts.
The ATA, which is an association that exists to promote the welfare of airlines, admits that over the last 30 years labor costs as a share of operating expenses have actually decreased by 11.4% from FY1972 to the 1Q2004. (Source ATA U.S.Airline Cost Index)
In fact over the last thirty years most costs have decreased with one big exception.
OTHER OPERATING EXPENSES.
Other operating expeness has gone from 3.7% in 1974 of total operating expeness to 19.2% in 1Q2004.
This is a huge increase.
Other Operating expenses has gone from only 3.7% to the second largest category of expense the airline industry has after labor!
This is outrageous! As these "other" expenses continue to eat up the airlines resources the industry has decided to go after a category that has already been in decline. A category that by their own admission has consistanly delived increased productivity for over two decades.
The more you look at the airlines the clearer it becomes that we, the workers are being duped by the airlines, the so called "unions" and the lazy press thats too lazy to do any real investigative reporting and merely forwards corporate press releases labeled as investigative journalism.
There are two things that we as workers need to realize.
1. People will be travelling whether or not any airline is making a profit.
2. Airplanes will be flying whether or not any airlines are claiming to be making a profit.
Now as long as those two things are true workers will be needed to provide the labor that makes that service possible.
The whole airline industry could loose money, they dont have to make a profit. Why? Because as long as people are spending money flying they are spending money on other travel related items. Transportation is the circulatory system of the economy, shut it down and the economy as a whole dies.
Lets say you are the chairman of XYZ bank. As a bank you own $1 billion in aircraft, another $1 Billion in hotels, another $1 Billion in airport bonds and another $1 Billion in airline stocks.
You lease aircraft to the airlines, you make money here with almost zero labor costs.
You make money off your hotels which the airlines help fill by bringing the people to them. Again labor costs are low as most of the workers are unskilled and non-union.
You make money off your airport bonds as the airlines pay landing fees and rent facilities.
Now comes the airlines. If the airlines show a profit, then the workers in the airlines will demand that their unions get them their share of those profits in the form of better wages an benifits. So what do you do? Without the airlines the other assett will not make money. So you keep them running but in a permanent state of poverty, only daring to show a profit when contracts are in place that prevents the workers from getting a peice of it.
So does it really matter if the airlines ever show a profit as long as they are moving people around and stimulating the economy?
Of course this is a very simple scenario, it treats the industry as one entity. Howver as we add more details to the scene it only further helps to accomplish the goals of those who own the means of production.
It would be interesting to find out where the airlines are spending close to 20% of their operating budget. Especially since we hear nothing about this, we only hear about the other two major expenses such as fuel and labor. But let me ask you this, Labor and fuel should be the two biggest costs of an industry that moves people from one place to another but what could they possibly be spending all that money on that they hide under the category of "other" and shouldnt the industry focus on reducing that? Other is the fasting rising category of costs. If way back in 1974 they were able to operate by only spending 3.7% and are now spending nearly 20% isnt that a shocking increase? It has already surpassed fuel, and at its current trajectory will likely surpass labor in a few short years.
The fact is people that as long as they can come to us, they will. They will drive our wages down to nothing if we allow them, and so far there has been no hint of any resistance from those we pay to lead us. Our six figure earning union leaders are too busy buying stock and counting dues. The planes come an go as if they took nothing. And us, well we are too busy fighting each other to realize what is really going on. NW is right, we do need a General Strike. But he is hopelessly out of touch if he thinks that this will ever happen with the TWU. Our pension? Its gone, as I said last year "Why wouldnt they come after the pension?" They would be stupid not to. People that are not willing to fight for a livable wage in the present certainly are not going to be willing to fight for something way off in the future. And even if by some chance we did decide to have a General strike they could always just "give it back" or use the courts to "mediate a compromise" where we give up something else in exchange. No matter how you look at it, at this point what would the airlines have to lose by going after the pensions?
So as the airline strip us of our wages, benifits and pensions, as our unions cry the company's tune and shrug their shoulders in an admittance to complete incompetance the airlines funnel increasing amount of money into things like "Other".
The ATA, which is an association that exists to promote the welfare of airlines, admits that over the last 30 years labor costs as a share of operating expenses have actually decreased by 11.4% from FY1972 to the 1Q2004. (Source ATA U.S.Airline Cost Index)
In fact over the last thirty years most costs have decreased with one big exception.
OTHER OPERATING EXPENSES.
Other operating expeness has gone from 3.7% in 1974 of total operating expeness to 19.2% in 1Q2004.
This is a huge increase.
Other Operating expenses has gone from only 3.7% to the second largest category of expense the airline industry has after labor!
This is outrageous! As these "other" expenses continue to eat up the airlines resources the industry has decided to go after a category that has already been in decline. A category that by their own admission has consistanly delived increased productivity for over two decades.
The more you look at the airlines the clearer it becomes that we, the workers are being duped by the airlines, the so called "unions" and the lazy press thats too lazy to do any real investigative reporting and merely forwards corporate press releases labeled as investigative journalism.
There are two things that we as workers need to realize.
1. People will be travelling whether or not any airline is making a profit.
2. Airplanes will be flying whether or not any airlines are claiming to be making a profit.
Now as long as those two things are true workers will be needed to provide the labor that makes that service possible.
The whole airline industry could loose money, they dont have to make a profit. Why? Because as long as people are spending money flying they are spending money on other travel related items. Transportation is the circulatory system of the economy, shut it down and the economy as a whole dies.
Lets say you are the chairman of XYZ bank. As a bank you own $1 billion in aircraft, another $1 Billion in hotels, another $1 Billion in airport bonds and another $1 Billion in airline stocks.
You lease aircraft to the airlines, you make money here with almost zero labor costs.
You make money off your hotels which the airlines help fill by bringing the people to them. Again labor costs are low as most of the workers are unskilled and non-union.
You make money off your airport bonds as the airlines pay landing fees and rent facilities.
Now comes the airlines. If the airlines show a profit, then the workers in the airlines will demand that their unions get them their share of those profits in the form of better wages an benifits. So what do you do? Without the airlines the other assett will not make money. So you keep them running but in a permanent state of poverty, only daring to show a profit when contracts are in place that prevents the workers from getting a peice of it.
So does it really matter if the airlines ever show a profit as long as they are moving people around and stimulating the economy?
Of course this is a very simple scenario, it treats the industry as one entity. Howver as we add more details to the scene it only further helps to accomplish the goals of those who own the means of production.
It would be interesting to find out where the airlines are spending close to 20% of their operating budget. Especially since we hear nothing about this, we only hear about the other two major expenses such as fuel and labor. But let me ask you this, Labor and fuel should be the two biggest costs of an industry that moves people from one place to another but what could they possibly be spending all that money on that they hide under the category of "other" and shouldnt the industry focus on reducing that? Other is the fasting rising category of costs. If way back in 1974 they were able to operate by only spending 3.7% and are now spending nearly 20% isnt that a shocking increase? It has already surpassed fuel, and at its current trajectory will likely surpass labor in a few short years.
The fact is people that as long as they can come to us, they will. They will drive our wages down to nothing if we allow them, and so far there has been no hint of any resistance from those we pay to lead us. Our six figure earning union leaders are too busy buying stock and counting dues. The planes come an go as if they took nothing. And us, well we are too busy fighting each other to realize what is really going on. NW is right, we do need a General Strike. But he is hopelessly out of touch if he thinks that this will ever happen with the TWU. Our pension? Its gone, as I said last year "Why wouldnt they come after the pension?" They would be stupid not to. People that are not willing to fight for a livable wage in the present certainly are not going to be willing to fight for something way off in the future. And even if by some chance we did decide to have a General strike they could always just "give it back" or use the courts to "mediate a compromise" where we give up something else in exchange. No matter how you look at it, at this point what would the airlines have to lose by going after the pensions?
So as the airline strip us of our wages, benifits and pensions, as our unions cry the company's tune and shrug their shoulders in an admittance to complete incompetance the airlines funnel increasing amount of money into things like "Other".
but hey atleast you will still be working for AA in 10 years I think us Overhaul guys will not. <_< 
