Pay Rates
- Captain pay rates will increase:
- $1.00 on May 1, 2015
- $1.00 on January 1, 2017
- First Officer Years 2-8 pay rates will increase:
- $0.50 on May 1, 2015
- $0.50 on January 1, 2017
- First Officer Year 1 pay rates will increase:
- To $30.00 on May 1, 2015
- The Company has the right to increase first year FO rates up to and including $36.50
These rate increases constitute roughly a 1% increase every two years, or the equivalent of picking up either one three day trip, one really good two day trip, three locals, or two standups each YEAR. In dollar terms, about $1000 for captains and $500 for FOs. Over the course of the four year package, we're looking to actually LOSE roughly 6% buying power simply due to inflation.
Second, some pilots have made a good point: with the way soft pay is paid on the CRJ, we'd be reducing the overhead that you get paid to fly the 700/900 compared to the 200. Before this, they were at 6/8% BHO, now they're less than that (although only slightly).
SkyWest, along with every other regional airline out there, is starting to become extremely worried about finding, hiring, and retaining pilots. In this package, we'd be giving them the ability to increase new hire pay 52% while raising everyone elses about 1%. I will be the first to say (and vote for) increases in new-hire pay, but those percentages are extremely skewed.
Pilot Profit Sharing (PPS)
- Pilots will participate in a new profit sharing program that is separate from Operational Performance Rewards and Financial Performance Rewards.
- 6% of the SkyWest Airlines’ annual net income will be distributed to the pilots and will be paid out the February following each applicable annual earnings period (payout to coincide with the Q4 SkyWest, Inc. earnings call).
- The first PPS payout will be paid in February of 2016 and will include earnings for all of 2015.
- PPS will be calculated based on credit hours for each eligible pilot. Eligible credit hours will be given a multiplier for CA (1.15) and FO (0.85). The maximum number of credit hours used in the calculation for any single pilot will be capped at 1,500 hours.
Personally, I think this whole profit sharing business is ridiculous. Profit sharing is a great tool for companies to use to incentivize employees to be a "part" of the company's success, and as such, it is and should be the company's discretion. But in the airline business, when so much of our profit is based on influences outside of our control, why the heck would we try to sell a bonus as part of our pay? There's no guarantee whatsoever that we'd ever get it. What really gets me about it, is the company's outright refusal to guarantee that our current bonus' stay in effect if this passes. Discretionary 401(k), performance rewards, and financial rewards will all be on the chopping block.
For most pilots, this has the potential to be the biggest gain in this entire pay package. Using $80M per year net profit, it's roughly $2000 for a CA and $1500 for an FO. However, since it's an annual bonus rather than quarterly, you must have earned income during the previous year and still be on the payroll on the date that the bonus is given out. Payout is Feb 12 but your new class date at American is Feb 11? Tough luck.
401(k)
- Company match for 401(k) will increase by 1% on January 1, 2016.
- Company contributions made after January 1, 2016 will be subject to a 5 year vesting schedule (based on date of hire).
- HCE employees will be made whole for Company contributions if unable to fully participate in 401(k) due to IRS limitations.
This increase would make our 401(k) schedule be 3%/5%/7%, which I guess is comparative to the regional market. Personally, I still don't think it's enough. There is also the issue that the company isn't even sure that they can legally raise the pilots 401(k) contribution separately from the rest of the company. If they can't, then they either pay everyone more (why did we waste the negotiating capital?) or they pay it out in income, which then gets taxed.
The vesting schedule...talk about throwing people junior to you under the bus! This vesting schedule is standard just about everywhere, which to me means that there is no reason we should even discuss getting rid of it unless we get a substantial increase in rates for giving up our 100% vestment! Maybe if they added a 2% automatic non-matching company contribution to go along with the proposed increase, then we can discuss vesting options.
Bonuses
- The Company may offer a newhire bonus of up to $10,000.
- The Company may pay a bonus of up to $7,500 to newhire pilots who hold a type rating on an aircraft SkyWest currently operates.
- The Company may offer a retention bonus of up to $20,000 per year that will include all current active pilots.
- The Company will consult with SAPA prior to executing any of the above bonus programs.
Two of these bonuses apply only to newhires, and one to all pilots. I don't see them ever utilizing the last option, and certainly not to the full $20,000. In theory, if the company chose to use all of their new-hire incentive options, someone with a CRJ type rating could conceivably make $54,000 in their first year, more than a topped out 8 year FO. Again, I'm all for paying new-hires more, but lets make it somewhat equitable, eh?
Per diem
- $1.85 (5 cent increase on May 1, 2015)
- $1.90 (5 cent increase on January 1, 2017)
Good, but by no means earth shattering. I'd say your average pilot will be looking at roughly $15 more per month of tax free income. Oh, did someone mention international per diem? No? Ok then.
Training Freezes
- 2 year transition training freeze for newhire pilots who have a documented choice of initial equipment.
I don't think anyone is bothered by this. If, as a newhire, you want a specific plane, expect to stay in that plane for at least two years.
Work Rules and Other
- Term = May 1, 2015–December 31, 2018 (The Company and SAPA agree to meet no later than June 1, 2018 to discuss rates for 2019 and beyond.)
Four years for all of these minimal gains, with the exception of some very substantial gains for first year pilots.
What is notably missing from this pay package are things that almost EVERY pilot at SKW wanted:
- Retro pay
- A year ago, we voted in a one year deal that consisted of very minimal gains for most pilots and were sold it on the basis that "It's only a one year contract, we'll be in a better position to negotiate next year, and we'll get retro pay if they drag it out." Now, 17 months later, we have a much better position to negotiate from, but no retro pay.
- MDG increase / trip rig
- We are all tired of 16 hour 4 days and PBS's "global" solution taking away flying we can hold and adding flying across days we need off simply because our trips aren't worth enough to meet the required minimum credit. Months of 10 total days off and 6 on/2 off gets old really fast. Most pilots here want a minimum 5/hr day average (if not 5 hr MDG). 12 days off a month wouldn't go amiss either.
- Staffing formulas
- SLC has 245 FO's for May and not a single reserve. This has been happening for a LONG time in MSP. I would like to see a 8/1 ratio (11% minimum reserves), but I doubt the company will ever agree to anything like this.
- Increase and guaranteed time off accruals.
- While I do like our current time off system, we need some guarantees built in. As @Autothrust Blue mentioned, we have no formulas to determine how many pilots can take time off on any given day/week. It is currently up to company's discretion, and the trend over the last two years has been a marked decrease in PTO granted.
I voted to reject it. It's simply too little too late.
