|Quoting LPDAL (Reply 1):|
I have to say, though UA is my favorite airline, I don't understand the economics of outsourcing work domestically--wouldn't it be more expensive to hire someone else to do your work? For example, if the outsourced workers are paid $8.00 an hour, while mainline UA starts at $9.50 an hour, or whatever, couldn't mainline UA just slash the pay down to $8.00 an hour? Yes, that would be quite controversial, but a job is better than no job.
This is probably a gross oversimplification, but let's just say I have to mow my lawn. If I mow it myself, it'll be cheaper, but I'll have to put in the labor and etc. Now, I could hire a landscaper to mow my lawn, and sit in the living room drinking a soda in the air conditioning, but I'd pay a premium because I wasn't mowing the lawn myself, I'm paying somebody else to do it.
As previously said the union has set pay tables that an employee has to be paid (the point of a union). Also, it is hard to survive on $9.50/hr, let alone $8/hr. At $9.50 per hour, assuming you are a full time employee and you have paid vacation or never take a day off (2080hrs/year), you are pay $19,760/year then you pay $2502.75 in federal taxes and state taxes (varies depending on the state but we can say about 4%) which is $790.40 then 7.65% for FICA (Social Security and Medicare), which is $1511.64
So after taxes you get a whopping $14,955.21 or $1,246.27 per month, how easy do you think it would be to live on that? There is a corporate responsibility part that many investors are starting to look at (look at Apple, Google, Facebook, Microsoft, Starbucks, profits compared to the airlines) if you take care of your employees you will have a better product at the end of the day.
Your analogy to mowing your lawn is totally incorrect, the airline would rather outsource as they don't have to pay the benefits on top of the employee's employment, remember you pay the employee $X but then they have to pay 7.65% FICA, Health Benefits, 401K. Generally the total cost of an employee is Salary + 25%plus. With outsourcing the airline pays the contractor a set fee and then the other company is responsible for all of the salary and benefits of their employees.
|Quoting LPDAL (Reply 8):|
Okay, so the contract protects the wages of the laborers and the union's proposal price was too high in comparison to what the outsourcers bid. From the above posts, it seems that UA can go and outsource any mainline station they see fit without any hindrance from the union. If the union can't keep mainline employees who perform their job competently in their current job in their current location, what is the point of the union???
Again, from a purely economical standpoint this equation makes sense, but more and more investors are looking at companies that are corporately responsible.
|Quoting LAXintl (Reply 49):|
Two simple questions;
1) Why should someone who stayed doing same job for decades 'deserve better' ?
2) Why should someone starting out 'deserve better' if $8 happens to be the prevailing going rate and company the does not seem to have trouble hiring at such rate?
Why should the prevailing rate be $8/hr? Why can't they be paid $15/hr and that be the prevailing rate, that is a living wage and the employees will be happier.
"Learn the rules, so you know how to break them properly." -H.H. The Dalai Lama