Originally Posted by
RoyalSwazi
Scandinavia is a high cost region, hence salaries reflect this. Wizzair tried to combat this by flying in cheap Polish crews, but this failed. I’m no socialist, but I’m a huge believer in being able to live off your salary.
Yes.
The Polish under the table cleaners that used to charge not even 50 SEK/hour in Poland ten years ago would end up in Sweden charging about 100 SEK/hour at the same time. Less than ten year later, the same kind of thing is said to go for about 150-250 SEK/hour if the very same Polish under the table cleaners stick to the same places in Sweden. Have those cleaners become 3-5 times more productive in Sweden over ten years than they were in Poland ten years ago? Definitely not. Have general or unionized Swedish wages risen that much to drive up labor prices for Polish cleaners that much in Sweden? Definitely not. And it’s much the same dynamic for other labor arbitrage efforts that require physical presence at on-site workplace to provide customer-facing service.
SAS can’t have most of its cabin crew employees based in Thailand. And when an industry’s key players are counting on being rescued from time to time by host country governments, it could turn out to be strategically risky for a business to dilute the government’s interest in resuscitating the business when the flying enterprise hits a lot of nasty financial turbulence. Gutting the local workforce and its vested interest in pushing for government bailouts in the future is risky business for the legacy majors doing TATL flying.