Sunday, September 13, 2009

Plane drivers

Are the pilots right?

Unions are a pain for any management, but to fire pilots for starting a union sounded extreme. Apparently, it was set off because the relations between management and pilots soured when Jet wanted to cut back on pilot pay.

However, I wasnt too comfortable with the idea of going on a pseudo strike and causing inconvenience to the general public let alone losses to Jet. But I was simply stunned when I learned that pilots make as much as 10L per month. Yes, per month. Some might make less but nothing below 3-5L. I heard Naresh Goyal on TV say that people making that kind of money shouldnt be exploiting rules intended for blue-collared workers. And that sounded logical. (Let me get this out of the way. I did feel pangs of jealousy on hearing the size of the pay packet.)

So the point is, do employees with six-figure salaries really need unions?  Such people have high intellect and specialized skill sets that cannot be easily replaced. That also means they have plenty of employment options. Their thought process is broad enough to consider the possibility of job loss and save for the rainy day (which bluecollared workers may not or even cannot). But airlines is an oligopoly, and one that is not doing too well. As it is, you have no  more than 5-6 airlines in our country with the majority of them losing money. While airlines may not be able to join hands publicly, they can still work behind the scenes to keep salaries down. A couple of years ago, our own IT companies agreed not to poach from one another, and have repeatedly stated that rising employee salaries are a concern.  Whether such moves amount to collusion or cooperation is a matter of debate.

I think the pilots are right in forming a union to maintain the power balance, but in the process have shown that they are no more than simple plane drivers. That is, they are no different from a railway motorman or a crane operator  who will find himself at sea should he be let go. It is not a skillset that can be transferred to a different industry.

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