Half-Pay?ByRaymond D. Matkowsky
During the 18th, 19th, and early 20th centuries is a British Naval or Army officer received a stipend when he was not in actual service
The concept of half-pay allowed officers was to be put into semi-retirement during periods of peacetime and for their recall when needed. This insured that the officers would be supported while they wait to be recalled and be ready to serve. As mentioned above, the system had worked well for several centuries.
In more modern times, the United Automobile Workers (UAW) received a stipend when they were temporary laid off. Again this insured that they would be shielded from hardship while awaiting recall. This also insured the automobile corporations that they would have a workforce when needed.
The amount of pay is not a question for this article. Each company will have to decide for themselves what is feasible. It certainly will not be the same for each.
Airline Industry
The airline industry has been hit very hard by the pandemic. The industry mothballed about half their fleets. Ultimately, they had to make cost cuts somewhere else also. As in many industries, the easiest and what is assumed to be the most productive cost reduction is salaries. Is this the case, however? It may not be so. It is tough to hire trained workers. 2022 has served as a vital learning experience for the industry. What has been done doesn’t work very well. It might be time for a change.
Airlines want to sell tickets to get people flying. However, between January and May, 2022, 88,161 flights were cancelled. A cancelled fight is costly. A cancelled first time flyer may never want to fly again. What started the cancellations?
Pandemic Aid
The airlines were entitled to $54 billion in federal aid. A provision of this aid was that they were barred from layoffs. However, this did not stop them from seeking buy outs. Many workers took the money assuming they will never return. Thus the airlines outsmarted themselves in not considering the future. There was a back-up when business picked up. It was very costly to start up again.
Can It Be Made To Work?
Can the theory behind British half-pay and the UAW contracts be applied to other industries? In the long run, is it cheaper in some version than the situation now? I don’t know. I did work for the British. It works for the UAW. The idea should garner some thought.
If you have any comments, let us know. Email me at rdm@datastats.com. We will try to print it in our next newsletter.
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