20 AMERICAN POLICE BEAT: JULY 2017 A ccording to recent news reports, the stock value of American Airlines dropped 8 percent after the company officers made the audacious deci- sion to actually reward the people who did the work with pay raises. Wall Street analysts criticized the com- pany. “This is frustrating. Labor is being paid first . . . again. Share- holders get leftovers,” wrote Citi analyst Kevin Crissey in a note to clients. Inves- tors showed their displea- sure by sending American Airlines shares down 7.3 percent to $43 in morning trading. When it comes to consumers, some like the cheapest prices possible, while others are willing to pay more for a better service or product. But regardless of which camp you are in, it is really poor service when the plane crashes, or can’t take off because maintenance is lacking. Low wages lead to staffing problems including unfilled vacancies and loss of talent. It doesn’t matter what busi- ness you are trying to run. The problems are the same, and market condi- tions will dictate salaries. Managers are not in the habit of throwing raises around without justification. Often, their own bonuses are tied to efficiencies, so the less the employees make, the greater their bonus or stock options. The system has built in checks and balances. It is often said that millen- nials don’t have the same sense of company loyalty as previous generations. But perhaps they have figured out that the employer’s ethics and loyalty are the prob- lem, and they choose not to make commit- ments beyond the lev- el that the employer is committed to them. We know how much trouble law enforce- ment is having re- cruiting officers and dispatchers. Twenty years ago, lateral transfers were unheard of. Everyone started at the bot- tom of the pay scale. Today, many agencies offer higher pay for experi- ence, and some employers According to aviation consultant Kit Darby, regional airline co-pilots and pilots in the lower ranks don’t earn a living wage. That means a wage you can live on. need to use HAMs (Hiring Above the Minimum) to attract enough employees. Other specialty fields have similar problems, including health care and engineers. Quality pilots and jet me- chanics probably are in short supply too. When you’re a passenger at 35,000 feet, you want the best pilot, not the low bid pilot. In times of austerity, employees are asked to tighten belts to share the pain. Health care, pay raises and fringe benefits have all been squeezed because of reduced revenue. However, the country has experienced eight straight years of economic growth, and a steady decline in overall compensa- tion during the same period. When there are surplus government funds, the conversa- tion centers on tax cuts, even as employ- ees have seen their wages stagnate or di- minish. Any successful company knows that investments in employees, equipment and infrastructure ensure long- term viability. Hopefully, government policy makers can recognize that need as well. Other specialty fields have similar problems, including health care and engineers. Quality pilots and jet mechanics probably are in short supply too. I ’ m b r o k e a s F ! Yeah . . . you get what you pay for When you pay people crap wages, expect them to do a crappy job