More Jobs Overseas

Last week’s blog recommended you watch a video that concerned the plight of aviation maintenance jobs in the States. I admit and regret that I failed to know that this video is several years old and to those of you that expect more of me, apologize. It is interesting; however, that the topic is just as pertinent today, if not more than it was when the video was produced. So for those of you that have already seen it, I recommend you take a look back and see if the warning that was so credible at that time is even more accurate today. For those of you in the profession that have not seen it, please take the 10 minutes to view it. It will be to your benefit. Again, www.linktv.org/video/1513

Highlighting the prevalence of the video’s topic, I am reading today that Pratt & Whitney is closing two U.S. maintenance facilities in Connecticut causing the loss of some 1,000 jobs and a suit from the IAM. The work from one plant is being transferred to Asia, the other to Singapore through a company-owned business in Georgia. Pratt has quoted cost improvement numbers ranging from 40 percent to 170 percent lower in Japan and Singapore versus those in the States. Pratt claims it did all it could to install cost improvements at these locations. IAM offered a plan that would have resulted in almost $26M in current savings and additional savings related to overtime and process improvement. Pratt claims these saving were not quantifiable, thus the reason for the IAM litigation.

I am neither pro nor anti union. Management’s argument is that unions have priced their workers out of jobs. Union’s arguments include management’s bad long-range fiscal decisions, failing to fulfill promises, and ridiculous pay rates for the non-achieving executive level. I agree that someone who drives a forklift or cleans johns should not earn the same as skilled technicians and other accomplished workers. Nor should they be allowed to load-up overtime in their last years of work to maximize retirement pay. On the other hand, why should the loyal, hardworking labor force be liable for the self-righteous, ego building, and sometimes illegal plans and actions of management.

This is an old fight that has gone on in this country since the robber barons exploited every one they could for the sake of making a profit. True, much of the American economy was built by these entrepreneurs. Only, one has to realize it was done on the backs of under-paid, oppressed labor. We don’t need to go there anymore.

Have the unions swung the pendulum too much to one side so that in order for American companies to be competitive we need to go overseas for labor? I don’t see how we can ever compete with a country that has a standard of living that supports workers making less than $100 per month.

Does management get a carte-blanche reprieve when it comes to pp planning and ineffective execution? I know it’s not right that the lower levels reap the ignominious returns for these decisions, but can something be done about it?

What are your thoughts on these matters? Is there something more those of us in the profession can do to ameliorate the effects of these difficult financial times? Are American workers paid too much? Let us know what you think. After all each of us is riding in the same boat as we try to weather the storm.

 

Playing the Odds

Recently I spent just 10 minutes viewing an important message about US airlines and how most are outsourcing much of their maintenance work to foreign repair stations. If you have not seen it, you should take the time. The site is www.linktv.org/video/1513.

Briefly the presentation starts with the JetBlue accident at LAX where the crew, immediately after take off, discovers the aircraft’s landing gear is stuck down in a sideways position. It took 2.5 hours of circling the field before attempting a landing. All this occurred while the passengers where able to follow their plight on the onboard TVs’. I’m sure not a comfortable 2.5 hours. It is reported the maintenance on the aircraft had been done at TACA in El Salvador. Jet Blue outsources most of its maintenance to that country and Canada. They are not alone.  US airlines, in general, are outsourcing more than 50% of their heavy maintenance… Southwest 64%; Continental 65%; America West 72%; Alaska Air 80%. The total outsourced approximates $49 billion dollars a year.

Now I realize there are tremendous pressures on airlines to reduce costs and lower ticket prices. But at what price? You may be wondering how I came to the title, “Playing the Odds”. Unbelievably, this is a quote from one of the passengers interviewed for the video when he was questioned about the safety of the airlines he is flying and his knowledge of the maintenance done on their aircraft. How scary is that?

Can the FAA, which is charged with overseeing some 5,000 plus repair shops, ensure that the security of the aircraft and the parts that are used to repair them is maintained? Can they guarantee that the oversight of the work accomplished is in accordance with all approved procedures and regs? Finally, can they attest to the competency of those working on the aircraft as meeting the required knowledge and skills levels? The video points out that just this year they lost some 300 inspectors due to retirement or transfers. Actually the preceding are rhetorical questions because we know that, staffed and budgeted as they are, none of these goals can be achieved by the FAA alone.
Aviation maintenance job losses have been directly tied to this latest airline enterprise. As an example, it is pointed out that just several years ago Northwest employed more than 10,000 mechanics; now there are less than 1,000. Startling!

It was also noted that a US technician at an airline averages $35 per hour, where as repairmen (they do not have to be certified) at TACA earn approximately $300 to $1,000 per MONTH! Training is optional for these personnel and most do not speak English, the language of aviation and, most importantly, the language in which the aircraft’s maintenance manuals are written. What’s up with that?

I know most of you are interested in the way the tide is ebbing in your profession, so I highly recommend you watch this video. While some of you may not be airline mechanics, this kind of movement seems to have a way of growing, especially as it reaches critical mass. So keep you guard up and stay informed.

 

Let’s Have a Combined Effort

I just read John Boomhower’s press release asking for support for the Professional Aviation Maintenance Foundation, (PAMF), a 501c3 founded by PAMA, but not integral to PAMA’s operations.  Support is needed to provide scholarships to worthy young aircraft maintenance students that will find it difficult to pursue their goals without this financial assistance.  Boomhower runs a good ship and the foundation has done excellent work over the years. But it can do more and it needs the support of the industry members that benefit from bright new talent entering the aircraft maintenance business.

AMTSociety is also linked to a 501c3, the Northrop Rice Foundation. This organization also provides scholarships for aircraft maintenance students. Additionally it provides financial and tooling support to aviation maintenance schools and instructors, a worthwhile and necessary pursuit.

While both undertakings are without question worthy of industry’s support I can’t help but wonder if their separate efforts are effectively cancelling each other out. These are tough times for the OEMs, MROs, and other aircraft maintenance organizations that are being solicited.  Contributing to these scholarship requests stretches an all ready tight budget. I do not think, however, there would be any hesitancy if these contributors felt they were putting their donations in the right place. They need to be confident that the funds will be used as advertised and wisely. Two organizations soliciting from limited membership bases may be sending a mixed message and effectively negating the assistance each is requesting.

This, in my mind, is another example of why we must go forward.  PAMA is fading away and the Society is emerging on the horizon. There is no reason that each of the foundations can’t work with the Society to funnel their efforts with more effective results. There should be no confusion. A needy, worthwhile student will appreciate help in any case, whether it’s from the NRF or PAMF. 

That’s what I think. How about you?