I had previously stated that giving 100k to the senior guys and 20k to the jr guys was unfair, and giving 60k to everyone would work out to be the same thing. While I stand behind the premis, it was a generalization and there were a lot of things I did not take into account. Obviously fleet type, as well as pay rates in the middle would need to be considred when coming up with an equal raise, and the 60k number was a catch all, easy napkin math calculation. I apologize for not looking deeper into the numbers and making the general claim without properly explaining it.
Below is a table using real numbers on the NB 737 fleet. CA's got around 63k ish on average, and yr 1-4 FO's got around 26k average. On the left is the old rates, followed by the new rates, then the raise amount for 2024. After that I added on 2% and compounded it for each year for the potential of a 2%annual raise. The annual totals, as well as annual savings for a person are indicated below it. Then, I averaged the total raises given over 12 years and then on the right side added about 51k to the current salaries for the "theoretical equal raise idea". You can see that things DO NOT get trimmed as much as my general idea led on. You can also see that the difference in overall earnings for 12 years is 18k more for the currently proposed tables vs the equal salary tables. If people were to save 10% of their gross and get 6% annually (compounded monthly) that difference drops to only 10k. These are not figures in the hundreds of thousands as people seem to claim.
Things to note... This only goes up to year 12. I know that after that, things will swing the other direction. Taxes are obviously not taken into account. If they were, it would have the right side of the chart faring better. I am aware that not everyone will save 10% of their earnings. Some will save more, some will save none. Some will pay off debt sooner which would also have the right side of the chart doing better. There are just too many variables. Time and quality of life are also VERY REAL things to consider. Early money helps with that. As another poster pointed out, time spent away from home, commuting because they can't afford a house, working a second job to pay interest on a LoC are all things a person can't get back. Not exactly easy to put a dollar value on this concept and measure it on a spreadsheet.
To clarify, the raises don't have to be 100% equal accross the board. I use this as an example of how the raises could be more equally distributed to help benefit the young guys WITHOUT the senior guys having to change or sacrifice very much if at all.
Respectfully.
