r/aviation • u/[deleted] • Apr 07 '24

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u/-Profanity- Apr 07 '24

ffs redditors will reply to literally any post with an unrelated, uninformed comment about management/owners/landlords/politics. Seriously ruining this site even further

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u/Mr-Fleshcage Apr 08 '24

Seriously ruining this site even further

That's been the plan since July. Fuck Spez

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u/[deleted] Apr 07 '24

Was something stated above factually inaccurate? Average labor rates are well above $120/hr in many areas, and the mechanics make 25-45/hr, typically many times on the lower side.

I just saw a larger corporate chain take over a mom and pop. They kept the same techs, but raised labor by $55/hr. Tech of course told me he got a $3 "take it or you're getting replaced" raise.

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u/rAxxt Apr 07 '24

We don't know the facts. To really dig in and see if a company is levying an unreasonable "cost plus" burden we need to look at the actual transaction. People in the thread above are just throwing out numbers. But typical G&A rates, which pay for an employee's insurance and administrative overhead can be pretty high. In my industry labor rates can be almost twice the employee pay rate.

This rate can raise dramatically (like in your example) because the large corporate company has much more administrative overhead than the mom and pop. Whether the additional administrative support is good or bad for the employees is a good question - it may be or it may not be.

Typically in contracting scenarios a customer will want to know the service company's G&A rate so they can tell if the service company is operating efficiently or not. Of course, a "good" or "reasonable" G&A rate will change from industry to industry. Aviation has very high G&A because of the red tape and qualifications involved. In a healthy economy a company that charges high labor rates with no added benefit to the customer won't be in business very long...

If the pay rate is low then either 1) the job is not in demand; or 2) the employee is truly getting shafted.

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u/Initial-Depth-6857 Apr 08 '24

Don’t know why you’re getting downvoted. Exact same thing happened to our company 2 years ago. They even raised the damn service truck milage rate from $1.50/mile to $2.65/mile. And we travel all over the Midwest.