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Pilots Reject Deal to Allow American Eagle to Add Larger Embraer Planes to Fleet

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The leadership of the union that represents American Eagle pilots failed to ratify an agreement that had been negotiated in January with American Airlines Group. The American Eagle Master Executive Council rejected the deal that would allow American to add 60 new Embraer 175 aircraft to its fleet but called for freezing the pay rate scale until 2018 as well as higher contributions for healthcare insurance..... (www.frequentbusinesstraveler.com) 更多...

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jmilazzo
joe milazzo 9
Give the planes to Air Wisconsin. They've been flying the same old POS Crj's for will over 10 years and they are ragged out!!
Musketeer1
Musketeer1 7
Read: "Pilots reject deal to continue getting buttf***ed"
saso792
saso792 5
I believe the American Eagle pilots would have voted no on the contract too but the union should have let the pilots vote on it and have the final say.

Actually, American should not have tried to force the Eagle pilots into making more concessions with a new contract after the pilots had already done so just a short time back to help with American's bottom line while emerging from bankruptcy. American's management is more interested in their own wallets than they are in their employees financial health. That has been proven by the outrageous salaries and bonuses paid out to management who collect millions of dollars while paying their first officers a poverty wage.

American management should be ASHAMED!
SWEATINTHSWAMP
Something is out of whack here in the USA between upper management and the men and women who make the corporation work. Executive pay is so out of line with the hired help in a majority of publically traded companies.
RECOR10
RECOR10 0
Simple solution. Become an exec.
SootBox
SootBox -3
That was always my solution for people who pissed & moaned about oil company profits.... BUY STOCK!
RECOR10
RECOR10 -2
But will they GIVE me stock? I dont want to work for or pay for this stuff. It is like that Dead Milkmen song..."Everyone has nice stuff but me".
saso792
saso792 3
American Eagle pilots and first officers have been and are willing to work for it. That doesn't mean the company should take advantage of them to pad their own pockets.
preacher1
preacher1 3
The only saving grace in all this, and it had to be intentional which was the problem, is that although the planes were bigger, they were new and they'd be getting rid of the junk they are flying. While it probably doesn't violate the scope, it's coming closer and I think it was a mistake on the wage freeze and benefit cuts.
PhotoFinish
PhotoFinish 2
I get that. But paying regional pilot mord to fly ERJs than they'd get starting if they moved to the mainline would work against AA strategic needs.

The pay problem at the regionals isn't at the top, but at the bottom.
RECOR10
RECOR10 1
First, I am NOT a pilot. However, it has been an industry known for years that there are issues with pay at hours. If I am not mistaken, first really in the limelight with flight 3407 that crashed near Buffalo NY. The female (co?) pilot dragged in and out of blame for a few weeks. Since then I have seen many a story on national news about the issues - to me, the problem is not the story, it is the tone of the story. The tone of the story all together is no "lets find a solution" rather the tone is "be afraid to fly". First we need to change public perception.It would also help if the pilots simply would not take the low paying jobs...if everyone says "more or I walk"...
RECOR10
RECOR10 1
I hate the spell check on my device :-)
preacher1
preacher1 1
There is no such thing as shame in the world of management or labor. Management is there but for a short time and is interested in getting all they can get, regardless of who it may hurt. Workers are just expendable commodities and this episode shows that even a union contract is not security. Management only has to please the board and if the company is showing them a profit/paying a dividend, it makes them not a tinker's damn how it was arrived at. $ are the measuring stick and all else is uncertain, definitely not anywhere close to security for the worker. On another subject, that may be why the economy is not picking back up as planned, in that workers may not be spending money on account of that insecurity. idk, just a thought.
PhotoFinish
PhotoFinish 1
I might suggest that it's the other way around. The economy us doing plenty well (growing at close to or better than 3% already).

But companies aren't hiring on workers that are not necessary to get the job done. All have learned to get more done with less. And most companies are not interested in going back to doing less with more.

The unemployment situation won't get fixed any time soon either, at least not for unskilled workers. There are many structural issues that are depressing the employment picture.

Partly it is the labor markets that are available in a globalized world. There are many all over the world that would appreciate tier own shot at a middle class job.

Partly in the US is the oversupply of labor (particularly unskilled labor) that results from so many that are present without legal status nor any immigration documentation. These folks are often willing to work for much less than natives, as they are often coming from places with much less.

Partly it is the uncertainties that exist in economies all over the world. In the US, it is a jobless recovery. In Europe, it is a financial system that has yet to finish deleveraging. plus in many European counties, they'd love to have the US employment rate. not to mention that there is still talk of European disintegration. Not all countries seem to have their interests aligned. Those that have, don't want to share with the have nots. Those that have not, don't have, and are at odds with a way to get going.

China's growth has slowed down to single digits. Bit they don't have a market economy. The transition away from a centrally directed economy to one that is responsive to the marketplace will cause headaches. Real estate is a huge bubble. There are many newly built but completely or mostly unoccupied residential, commercial, retail/malls and/or office buildings. Some day they'll use all those empty airports, empty buildings and empty cities. But they'll have to pass some difficult moments between bow and then.

And those 3 examples are among the largest and most important economies globally.

American workers spending more freely, would add to the US and world economies incrementally. But even they couldn't mitigate all that systemic risk and weakness around the world.
PhotoFinish
PhotoFinish 2
As the largest planes in the fleet, any premium would go to the already-best-paid most-senior pilots.

American needs these pilots on the mainline fleet. Giving them more money will encourage some to stay on the Enviy regional fleet.

Paying more for these planes works against AA's needs. The pilots that need more pay are the ones with the required 1500 hours who are considering their options. McDonald's wages won't work for many. At least not without some well-defined path to much better wages quickly and/or flowthrough path to the mainline airline. Even with those promised benefits, starting wages will tend to increase. Pilots with 1500 hours will be fewer. With their extra prep work, they'll demand more, as their options will be greater.
preacher1
preacher1 1
Well, this came home to roost a few years ago in the trucking industry as the CDL and new D.O.T. regulations/monitoring came into effect. A good CDL qualified driver could about name his price and go about anywhere he chose. As pilots come upon 1500 hours and have a clean record, they will be able to do the same. It will all be about money, and as General Lee said one time, "the one that gets there firstest with the mostest will win"
tbpera
Tom Pera 2
seems like it's time for the regional pilots to band together and shut it down.... not a big union guy after I lost my job in '81... but, I feel for those young flyers on those feeders... already getting screwed waiting for their dream job (flying with majors) to happen... problem is, as I've said before... supply and demand.. as long as there's an overabundance of young kids ready to climb in the cockpit of a regional jet/turbo, pay and benefits will stay at lowest common denominator.. we went out because we believed if we got 10,000 nobody could replace us - didn't figure the airlines would go along with the government to get rid of us... wish these guys well...
preacher1
preacher1 1
There is an update in another story here on FA. AAG did not waste any time.
canuck44
canuck44 1
Now the geniuses at American have orders for 60 E-175s and will have to either mainline them or start up a new entity to try to entice pilots to work at minimum wage to fly them. The first Eagle pilots to bail to other airlines (Stateside or overseas) will be the most senior. One way or the other American is going to pay more to have them flown.

These same geniuses will have to rationalize whether having feeder service is necessary to keep the mainline seats filled or whether they will have to switch to a Southwest model of more point to point and still trying to attract business with the standard US Air crappy service.
preacher1
preacher1 2
The other article here on FA references downsizing Envoy/Eagle so apparently they have, or at least had a place to go with them. It may not be less money but basically, contract air can be handled as an expense rather than a capital cost, nor do they have all the liability of fringes and all. It is sad, but it will really be interesting. Douggie Boy needs a can or 2 tied to his tail instead of being the perfect Golden Boy. I'm really curious how much of this Horton is involved in in or if he is just sitting back and saying I told you so.
PhotoFinish
PhotoFinish 1
Word on the street is that Republic is picking up this planes, and doing all that flying. It is Envoy's pilots that missed out. They only have their union to blame. The pilots should've had a chance to vote on their future. Then they'd have no one else to blame, had they rejected the work, that now seems headed to Republic.

You know what they say about horses and water.
skyfly12
shawn white 1
"For a fixed salary for the next f^^^^^^ four years." No thanks.
PhotoFinish
PhotoFinish 2
Most of the best pilots would've moved up to the mainline AA fleet or some other major within those four years. If the issue was getting higher pay, they missed out on a opportunity for better flow-through benefits with much higher pay than is possible flying regional-sized planes.

Why do pay increases every year have to be a stumbling block, especially at the upper ranges? Either the pay is sufficient compensation for the work performed or it's not. Either it is enough to live or it's not.

It is way more important to pay the starting pilots more. First, the regionals need to recruit more pilots. Secondly, the new pilots need to take financial stress away as they're starting their commercial airline career.

Locking in ever higher wages at the top, means less flexibility in recruiting new pilots and paying them more reasonable wages. And it has the perverse effect of making the pilots too comfortable and consider staying instead of moving up to the mainline.

Higher pay should be tied to fulfilling a greater role, eg. as an instructor or check pilot, and not just be tied to time alone.

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