I had to sigh when I read this article in the Milwaukee Journal-Sentinel on the draconian pay cuts Midwest Airlines is asking its employees to take in order to survive. Having worked at two airlines during turbulent times, I too faced the decision on what to do when management imposed pay cuts. In the first case, I took a temporary cut at Mesa Air Group after the horror of 9/11, when airlines didn't know how long it would take to recover from the week-long shutdown of the air system and travelers deciding to fly again. The second time found me swallowing hard as I took a pay cut at Delta Air Lines after the carrier filed for Ch. 11.
But these cuts were nothing compared to what Midwest is asking of its employees -- pay cuts of up to 65% for union pilots and flight attendants to avoid filing for bankruptcy. And this is on top of grounding its MD80s -- almost half the fleet -- and laying off hundreds of workers.
Midwest parent TPG says it will invest more in the carrier to help it get through the current fuel crisis, but "needs to see a workable plan so their investment makes sense," according to the newspaper.
Breaking down the numbers, a junior captain's pay could plummet, going from $120,000 down to $30,000. And new flight attendants could see their pay drop to near or even below the minimum wage.
Many people enjoy working for an airline and hang in there as long as they can. But when I was at Delta, during its most turbulent period, people were flowing out the door, lured by the stability and prosperity of local companies including The Home Depot, Coca Cola, Georgia Pacific and Turner Broadcasting. They were tired of pay cuts, no raises, benefit reductions and worsening flight benefits.
The remaining Midwest Airlines employees are facing a hard decision. And for those who stay, there's no guarantee that the carrier's gambit will even work. As an industry friend told me -- "no airline has ever shrunk itself into profitability."
