Contract talks?
#21
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Negotiations have been pretty tight lipped, but our latest update mentioned the company presenting to the BOD and then scheduled to hold negotiations every day this past week. Basically it is impossible to tell how far apart the two sides are, however the pace of negotiations is promising. We can only hope the company is feeling pressure from the recent Endeavor deal. However, I have been around long enough to not get my hopes up for a quick contract process. If I had to speculate on a rumor of a purchase, it would be Horizon. Gets us into the west coast pilot market, they’re teamsters, their CEO is on the way out the door with no replacement announced, and it would probably allow for them to continue to take their 175 orders. I don’t know a whole lot about their relationship with Alaska, but it seems to not be a good one. There’s my wild speculation rumor for the day...
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#22
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Negotiations have been pretty tight lipped, but our latest update mentioned the company presenting to the BOD and then scheduled to hold negotiations every day this past week. Basically it is impossible to tell how far apart the two sides are, however the pace of negotiations is promising. We can only hope the company is feeling pressure from the recent Endeavor deal. However, I have been around long enough to not get my hopes up for a quick contract process. If I had to speculate on a rumor of a purchase, it would be Horizon. Gets us into the west coast pilot market, they’re teamsters, their CEO is on the way out the door with no replacement announced, and it would probably allow for them to continue to take their 175 orders. I don’t know a whole lot about their relationship with Alaska, but it seems to not be a good one. There’s my wild speculation rumor for the day...
#23
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They are talking frequently which is an obvious sign that there is some sort of path to an agreement. You don’t keep talking to someone you can’t come to any agreements with so this is all positive. Who knows how long it will take but something will have to go wrong for these frequent meetings to result in nothing soon.
#25
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#26
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Mesa does a lot of lift in and out of IAH. That would have to be replaced. And I don’t see them relocating that ejet base to anywhere except IAD maybe. Not saying it’s impossible but there are several barriers. But we’ll see. This regional industry roller coaster is only climbing the first hill.
#27
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I don’t think republic is in a hurry to finalize a TA anytime soon. They’re currently filling new hire classes and they haven’t maxed out signing bonuses yet.
The rumors of a $20 per hour increase are just rumors. Currently we have roughly 2061 pilots on the seniority list, which would result in a cost of $37,098,000 per year to the company, and that’s just 75 hours at the plus $20 rates. The current CBA was costed at around 27 million total, so 37 million per year will not happen. Endeavor is able to pay those rates, because of momma Delta.
We don’t have to beat endeavor, we just need to beat Skywest, TSA, Mesa, and express jet. Why would AA and Delta allow us to increase our pay above their WO regionals? They need a whipsaw, and a shortage at the regional level will not change that anytime soon. Expect 10-12 percent pay increase, and that’s best case. Probably less for captains.
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The rumors of a $20 per hour increase are just rumors. Currently we have roughly 2061 pilots on the seniority list, which would result in a cost of $37,098,000 per year to the company, and that’s just 75 hours at the plus $20 rates. The current CBA was costed at around 27 million total, so 37 million per year will not happen. Endeavor is able to pay those rates, because of momma Delta.
We don’t have to beat endeavor, we just need to beat Skywest, TSA, Mesa, and express jet. Why would AA and Delta allow us to increase our pay above their WO regionals? They need a whipsaw, and a shortage at the regional level will not change that anytime soon. Expect 10-12 percent pay increase, and that’s best case. Probably less for captains.
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#28
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Realistically, they don't even need to offer any pay raises across the board. The needed demographic is new FOs, so why not just raise Year 1-6 FO pay to be equal to or a little higher than the equivalent captain pay? I'm sure it would be hugely unpopular with the some of the captains, but we only need 50.1% people to vote yes on it. That would immediately end any recruiting issues by paying all new hires as street captains with out actually being street captains. Not saying I'm endorsing this, but from a pilot recruitment standpoint, money talks louder than anything else.
#29
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It's been said again and again by BB that the goal of the new contract is to not only attract new hires, but to attract more lifers to stay at Republic and not move on. That leads me to believe that pay will increase throughout the spectrum, to include raising the max wage limit which is currently at 20 years.
.....and he also said that the new contract also needs to make sense for the company, which I read as he is not inclined to go too crazy with this new contacts. Either way, both sides have expressed they have no interest to make theses negotiations as long as the last and expect a relatively quick resolution.
.....and he also said that the new contract also needs to make sense for the company, which I read as he is not inclined to go too crazy with this new contacts. Either way, both sides have expressed they have no interest to make theses negotiations as long as the last and expect a relatively quick resolution.
#30
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It's been said again and again by BB that the goal of the new contract is to not only attract new hires, but to attract more lifers to stay at Republic and not move on. That leads me to believe that pay will increase throughout the spectrum, to include raising the max wage limit which is currently at 20 years.
.....and he also said that the new contract also needs to make sense for the company, which I read as he is not inclined to go too crazy with this new contacts. Either way, both sides have expressed they have no interest to make theses negotiations as long as the last and expect a relatively quick resolution.
.....and he also said that the new contract also needs to make sense for the company, which I read as he is not inclined to go too crazy with this new contacts. Either way, both sides have expressed they have no interest to make theses negotiations as long as the last and expect a relatively quick resolution.
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