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Getting “the full value of their labor” would leave no surplus to cover capital depreciation or other people in the airline’s wages, or to pay the airline’s deb
by solidsnack9000 7y ago
Getting “the full value of their labor” would leave no surplus to cover capital depreciation or other people in the airline’s wages, or to pay the airline’s debts or capital costs, or to allow the airline to bank cash for a rainy day.
In many cooperative enterprises, like the historical Cherokee communal farming set-up, people set aside some of the value of what they produce to (a) cover miscellaneous capital costs and (b) be provide a reserve. The pilots should be producing a little more than they receive; otherwise the airline would collapse the next time a flight got delayed and people had to be put up in a hotel.
- barry-cotter 7y agoYou’ve just described the history of the US airline sector. Every 30 years financiers forger what an awful investment airlines are and invest money into subsidizing price wars and expansions. It looks like there’s rising profits, the pilots’ unions get generous raises and then competition gets vicious and the profits disappear and the airlines go bankrupt.