“ABX refused to recall pilots who had been furloughed as a result of DHL’s termination of North American operations several years ago. ABX refused to recall those pilots because it did not want to bring them back and pay them at the top of the pilots’ wage scale, as required by the pilots’ contract. ABX instead extinguished those pilots’ recall rights earlier this year and then tried to hire new pilots who would be paid at the bottom of the pilots’ wage scale. ABX management has acknowledged that its penny-wise, pound foolish scheme backfired, as it waited too long to start hiring additional pilots and actually hired too few pilots. Since then, ABX has been forcing its pilots to fly additional trips and disrupting their schedules in an effort to climb out from the staffing hole it dug for itself”.
Seems like self-serving profit motivated labor abuse to me. Wage theft is still theft.
>No one knows exactly how big a problem wage theft is, but in 2012 federal and state agencies recovered $933 million for victims of wage theft. By comparison, all the property taken in all the robberies of all types in 2012, solved or unsolved, amounted to a little under $341 million.
[1] -- http://theweek.com/articles/642568/biggest-crime-waves-ameri...
[1] https://ucr.fbi.gov/crime-in-the-u.s/2012/crime-in-the-u.s.-...
Relevant: http://philip.greenspun.com/flying/unions-and-airlines
Based on what I understand of economics, I have to think that pilot unions are part of the cause of the problem here. By locking pilot compensation to number of years' service at the firm, firms are unable to compete with each other for pilot talent, and incentives are screwed up (like you quoted above). Pilots are also unable to compete with each other on compensation by changing firms.
I do not mean this as any kind of defense of ABX (I know little about this situation beyond what I've read in this thread), and I agree they are morally bound to meet their contractual obligations to their pilots, but at the same time perhaps they'd be able to hire more pilots in a sane way if the airline industry pilot salaries weren't all locked up by this arbitrary and stupid (from my position) years-at-firm requirement.
I don't want an underpaid, overworked pilot who will never be able to retire to fly a plane I'm in or over my house.
Disclaimer: I have a private pilot's license, and my flight instructor was working for a regional making less than $20k a year with a terrible, sleep deprivation inducing schedule. You don't make $100k as a captain for almost 15-20 years.
I agree that pilot unions and ruthless enforcement of labor protections are a good thing.