digits_ wrote: ↑Thu Sep 07, 2023 6:22 am
A 30 000 bond for 3 years is excessive and goes way past the 'saving training costs if you leave sooner'.
To determine a fair value of a bond for initial training, comparing the training cost of an initial training vs a recurrent training would be a good start, while keeping in mind how long the training is valid.
705 ops have 6 month training events, which some stuff happening yearly. Let's be generous and focus on a 1 year period.
First year costs:
Initial training cost:
- initial GS
- initial sim
- line indoc
6 months recurrent training
year 1 salary
Second year costs:
2 x 6 months recurrent training
year 2 salary
Somebody with more inside knowledge could likely put some numbers on this. Does the difference between these costs exceed 30 000?
If initial training is valued at 30 000 by the company, does that mean people who already have passed the initial training, make 30 000 more than those who haven't?
It's not terribly difficult to quantify those costs, but I dont think you are considering all the costs of on-boarding a new employee correctly.
An airbus type rating from a puppy mill type rating place runs 10 grand us, so call that 15cdn. Reference here:-
https://atpflightschool.com/type-rating ... ating.html
That is quoted as a 10 day course, so it's pretty minimal. If you look at the Flitesafety site, it quotes significantly more time for a course, 4 to 5 weeks., and almost twice as much time in the simulator. Cant imagine that would be less than 20cdn.
For the sake of some numbers assume a month from 'date of hire' till ' done the course'. So I'm sure the candidate expects to get a paycheque over that time, add a month wages to that cost. Depending on the airline, the gross on that will vary, then ofc the hidden payroll costs that employees dont see which tally up various remittances to CRA etc over and above the deductions you see on the stub. Call that 5 grand by the time the employee has been paid and all remittances have been forwarded, which is about what the number is for a new hire at AC on flat pay.
Most candidates will expect to have lodging provided, and per diems while taking the course, assuming it isn't out of home base. So add in some weeks in a hotel.
then ofc there are a bunch more incidental costs involved in on-boarding a new employee. Should make some allowances for the expenses of the hiring process from application thru till offer letter. That'll tie up a significant amount of time for various employees along the way, which is something that costs the company money. Over and above the course for the airplane, there will be things like company indoctrination etc etc. Somebody is being paid for their time while calling references as just one of those hidden cost examples, there are many more.
I dont think it's unrealistic at all for a company to have invested 30,000 into the employee by the time they reach line status.
As for the ongoing renewals etc, red herring, not relevant, all pilots on the line incur those costs, it's part of the cost of doing business. But it is realistic for a company to expect a return on investment for the initial investment in the employee, and 3 years is not an unrealistic timeframe for amortizing an investment of that magnitude.
A training agreement is a method a company can use to protect an investment, yet still allows them to on board new employees that dont have the means to self finance things like expensive type ratings. The alternative would be to move to the European model where flying becomes a rich kids game because the type rating is required before application, rather than acquire after hiring.
If you have ever paid the bills for a trip to Flitesafety on a much smaller aircraft, including the travel and lodging etc, you would not find 30K at all out of line for the cost of putting somebody thru for an airliner, and you may even question 'can they do it that cheap?'