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spyguy

RyanAir - UK harbringer

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1 hour ago, spyguy said:

'Following reports that pilots were leaving the firm, Mr O'Leary wrote to the Ryanair's pilots to offer them better pay and conditions. And in December, Ryanair said it would recognise trade unions, something the airline had always resisted, in order to avoid further disruption to flights over the busy Christmas period.

Since then, Ryanair has begun to recognise trade unions on a country-by-country basis, and its Irish union is currently threatening to ballot pilots over working practices.'

 

SMAC 67 lives

 

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Some of this might be demographics and peace.

I looked into being a helicopter pilot 20 years ago. 

Training was expensive, wages were awful (global - general pilots, not North Sea or other specialists).  From memory it was $25k a year.  Some airline pilots reportedly switched to IT for more money. It seemed that lots of Vietnam and maybe Soviet Afghan era military pilots had flooded the market.  Ditto for heavy multi engined transports/airlines I guess.

Now many of these people are retired, militaries generally are smaller, the glut of state trained pilots must be fewer and so we are back to industry or self funded training and certification.

Self funded pilots need to recoup their loans.  Industry ones will be poached for more money and are possibly a bit rare as a result.

Train drivers come to mind, paid well I believe, train companies poach from each other rather than train?

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Whilst some of this may well be company/sector specific (i.e. speciialised jobs such as pilots, etc) I believe that we are going to see an end to many similar such business models that, when all is stripped away, are really based on the ability to pay derisory wages.

Such companies (often run by feted cebrity status 'business leaders', for example such as Richard Branson, Stelios whatsisname, etc) can only get away with this fundmental for so long.  Their hey day is coming to an end.

I recall, many years ago, being briefly in the company of a high flying corporate accountant type (who had worked for a string of well known uber wealthy business leaders). Of all the things I overheard him say thatforever after stuck in my mind was the response to being asked how such welathy types became wealthy. The answer was that, for the most part, "Simple. They pay bugger all wages!". By that he meant in upfront hard cash. He regarded the US originated model of paying in stock options and such like, which holds the potential for jam tomorrow, as having been grossly abused in modern times. 

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To be honest, Branson didnt offer to pay in stock options.

Hes just a cheap, penny pinching ***** on wages.

Hes very generous with what he takes though ....

 

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4 minutes ago, spyguy said:

To be honest, Branson didnt offer to pay in stock options.

Hes just a cheap, penny pinching ***** on wages.

Hes very generous with what he takes though ....

 

Yes. I realise that. And nor do, as far as I am aware, other 'rock bottom' wage paying companies such as Ryanair - for ordinary rank and file frontline staff. I only mentioned/included it lest anyone counter my comment about supposedly successful wealthy business leaders paying bugger all - as they might retort that I had failed to factor in non-cash remuneration.

The comments I was recollecting was that, historically, stock options were the domain of the upper echelons of a companys staff. Whereas today, admittedly still mostly int he US and not here, it hs been used as a means to 'pay' rank and file staff. Other hard cash salary substitutes can often be perks and benefits that, very often, either cost the company less than paying cash salaries OR are frivolous and gimmicky that will hold little real value or worth to the average rank and file employee and rarely, if ever, be utilised/made use of.

The fundemental assertion remains valid - too many supposedly successful companies (whose leaders often taken on household name celebrity familiarity) are predicated on the assumption of being able to pay rock bottom wages. Additionally such companies will paint a picture of working for them as being more 'glamourous' than the competion (again Branson's Virgin airline being a more well known example) and may well try and accomodate 'modern' and flexible working practices.

We have all heard of the various hip and trendy Silicon Valley companies with funky workplace environments with free sweets and drinks and sleep pods, etc.  But IF anything these are merely very cheap ways of getting staff to work even longer in the office.

At the end of the day all these things do not pay the bills and everyday cost of living. Eventually the employees come to realise that and protest or leave.  There is a reason why the rank and file demographic of such modern 'trendy' compnies are dominated by the young - they are more easily exploited.

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Many companies can only exist because they get subsidised by tax credits/LHA so they can pay poverty wages and let the taxpayer pick up the slack. Nu Labour and the Tories have encourages this. It means not only do they pay less tax but taxpayers are having to pay more towards the welfare bill and are often no better off than the part-time, benefit subsidised low paid workers.

If you think about it, a company like Starbucks will be paying very little taxes because salaries are a business expense but because the salaries of their baristas are so low, very little income tax or NI is paid, so not only are these big companies reducing their Corporation tax bills but they also pay very little income/NI because of the low pay of their employees which are then subsidied by higher taxes for full time staff at other companies via the benefits bill. It's nuts.

Edited by fru-gal

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3 hours ago, fru-gal said:

Many companies can only exist because they get subsidised by tax credits/LHA so they can pay poverty wages and let the taxpayer pick up the slack. Nu Labour and the Tories have encourages this. It means not only do they pay less tax but taxpayers are having to pay more towards the welfare bill and are often no better off than the part-time, benefit subsidised low paid workers.

If you think about it, a company like Starbucks will be paying very little taxes because salaries are a business expense but because the salaries of their baristas are so low, very little income tax or NI is paid, so not only are these big companies reducing their Corporation tax bills but they also pay very little income/NI because of the low pay of their employees which are then subsidied by higher taxes for full time staff at other companies via the benefits bill. It's nuts.

Nope.

Brown.

Coalution started to try and unwind tax credits but where stopped by a lib dem peer.

Insane. See varioys posts.

Can only be defused by bumping up hours and reducing kids age when the stop.

 

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