Realitychex,Realitychex wrote: ↑Tue Mar 28, 2023 7:25 am If pilots or ame’s want to earn a salary in US$ working for a US domiciled airline, the best way to accomplish this is to jump through the hoops, get a green card or the appropriate work visa and move to the US.
US airlines collect the vast majority of their revenue in US dollars.
Canadian airlines collect the vast majority of their revenue in Canadian dollarettes, with a large portion of expenses, (fuel, rentals and maintenance) paid in dollars. The economics are completely different.
Until that changes, (not to mention the ridiculous tax regime in Canada) and it won’t anytime soon, if ever, Canadian domiciled airline will continue to operate with a huge economic disadvantage to US brethren. As a result, comparing pay rates in the two jurisdictions is a mugs game.
There can be no better strategy than threatening to strike and diverting desperately needed revenue to the ULCC entrants who will be frantically trying to keep their heads above water in May as they lurch between peak seasons.
Canada is a very different economic sandbox than the US, and it’s only going to get worse under the current political regime.
The best way to play in the US economic sandbox is to move to the US.
I always appreciate your posts and while I don't necessarily disagree with some of what you've posted above, I suggest that you make a logical leap that doesn't quite follow. Yes, the 'easiest' way to earn a US salary is to immigrate to the US. And, yes, the tax/revenue equation between Canadian and US airlines is different. However, comparing pay rates is hardly a "mugs game".
WJ has always compared itself to all North American Airlines both in operational performance metrics and financials. Under a previous (American) COO we would constantly get monthly completion, A15 and D0 rankings and, when a public company, the financial performance of WJ was compared to AC and the public US Carriers. The reality is that WJ is indeed competing with carriers both in Canada and in the US. I think, to a certain extent, pilots can recognize that based on higher costs there may be a small difference in pay, however, right now some pilots at WJ are literally making 50% of what 737 pilots at Alaska, Delta and Southwest are making and that's NOT factoring the exchange rate.
For example, a 2nd year 737 FO at WJ is making roughly $70 CAD per credit whereas an Alaska airlines 2nd year 737 FO is making $149 USD per credit.
WJ operates the same equipment, flies to dozens of the same airports, and in the case of code shares, carry the same passengers. This isn't a situation of being a couple dollars off, these are drastically different pay rates at companies that are consistently listed as comparators by the Company itself.
While executive compensation can be distinguished on the very fact that there are a dozen or so execs and 1800 (or 2300 including Encore) pilots, I'm doubtful that our current and previous international executives were being paid 50 cents on the dollar to work for a Canadian Airline because the "economics are completely different". Executives would simply look for a more competitive offer. Our pilots are now doing the same.
As has also been stated publicly, WJ/Encore/Swoop have lost significant numbers of pilots in the last year. While most have gone to Air Canada and other Canadian carriers, a not insignificant number have gone to the US as a result of either previous citizenship or pursuing a visa. The hurdles are becoming comparatively smaller when the differences are considered.
So while maybe there's an argument to say that an exact dollar for dollar match to our US counterparts isn't reasonable, looking at their rates of pay is indeed helpful to see what WJ's competitors are paying their pilots (and other staff). Just as executives would look at an offer of 50 cents on the dollar as not being competitive, the pilots are doing so as well.
A comment with regard to ULCCs which seems to get missed by current and former WJ management is that for roughly half or more of the current WJ/Swoop/Encore pilot group, their career prospects are improved with the continued growth and expansion of other ULCCs. The current flow time from Encore to WestJet is approximately 5 - 6 years. The current upgrade time at WJ is approximately 10 years (or more depending on the base). Lynx, Flair and Porter are all hiring pilots and, if their expansions are successful, will have drastically shorter upgrade times. The current job conditions at WestJet/Swoop/Encore simply do not offer enough of an incentive for junior pilots to continue their careers at the "WestJet Group of Companies". While there's a risk going to newer and/or expanding airlines, the risk/reward factor right now is simply too enticing. So this consistent talk of "what's good for WJ is good for the pilots" is simply not correct for a large portion of the pilot group and head office staff.
One of the values written on the wall in one of WJ's buildings is to "align the interests of WestJetters with those of the Company" - it wouldn't surprise me if you were the original author. Unfortunately, for so many current pilots, this simply is no longer the case. While I won't deny that I would like to make more money and have better career prospects (who doesn't?) I truly feel that this WJ Company value needs to be true again for the majority of its employees for WJ to again be successful. In order for the pilots to feel that their career prospects are indeed aligned with those of WJ, the difference between our current rates of pay and our US competitors need to be a lot closer AND, in doing so, it will also make the prospects of leaving to an expanding Lynx, Flair, Porter or Air Canada significantly less desirable.
