The Idiot's School of Economics

Aerospace is known to be a cyclical industry since the work is all dependant on defense contracts. When new contracts are awarded, there is a ramp up in the workforce. When old programs are expiring or cancelled, the workforce is decreased. To compensate for this cyclicality, the industry has created a need for work-for-hire engineers known as “contractors” (as opposed to direct employees). Contractors are engineers hired on a temporary basis to dampen this cyclical effect. They don’t get any benefits or job security but they are paid handsomely for their ability to hit the ground running and get things done.

Unfortunately, hiring contractors has also become a favorite method of management to save their own ass. They have added a whole new cyclicality to the industry: cyclicality within a program. On a 10-yr program, you can expect to see contractors hired and fired every 2 years or so. It’s the result of poor planning and poor management. Management is always surprised when direct employees don’t kill themselves trying to meet an impossible schedule. So when a program falls behind schedule, management calls in the experts (contractors). Now I have seen my share of contractors. I wouldn’t go so far as to say that they are more skilled than a direct employee with the same experience. But I will admit, on average, they hit the ground running and get things done faster than most directs. Why?

MONEY!!!!!!! Lots and lots of money!!!! On an hourly basis, contractors make about twice as much as a direct AND they get paid overtime. There are also tax benefits. When you take all that into account, contractors make about 3X as much as direct engineer. What a concept! Apparently, money motivates people! But somehow there is never any money for giving out good raises to direct employees. Instead of giving a direct another 10% as encouragement to meet schedule, they’d rather just hire someone else to do it for another 200%. And as long as they keep a policy of not rewarding directs, I’ll keep telling them to get a contractor to do it.

Because the Shitshow still has the audacity to ask us to work weekends, I throw rocks.