A brief summary
This was a dispute conflict between Virgin Airlines and its pilots about the delayed pay in 2011. Although the government intervened this case, pilots in Virgin Atlantic was not able to reach agreement with the airline on an overdue pay and conditions settlement. In fact, the increasing pay did not found since 2008. The representatives demonstrated that it would ballot Virgin Atlantic members on possible strike action. The company promised to pilots that there was an increase this year of 4 percent, with 3 percent next year and the same percent in 2013. However, Virgin Airlines did not fulfill its promise at all. The pilots also indicated that the inflation was growing up with 5 percent each year, the 3 percent increase is not enough to make a living. The company need to maintain its reputation, and reassure passengers about their flight schedule.
On one side, the pilots in Virgin Airline requested the over pay must be made on time and in full, while the rate of increased pay was not inferior to 5 percent per year. On the other side, the Virgin Airline just provided 3 percent increase, and they wanted to avoid the strike action and control the flight schedule as normal.
Before the negotiation, the Virgin Airline manager must gather the information to support the negotiation. The foremost thing is to research the rate of inflation in UK. From the Office for National Statistics (ONS) data, there is a significate decrease after 2011 in inflation ( appendix 1.1). At the same, the increased pay rate for other airline companies is also required to be investigated. According to the table ( appendix 1.2), other airline companies’ increased pay rate did not grow up dramatically more than 5 percent, most of them increased pay rate between 3 percent and 4 percent. Based on these, the manager designs three scenarios for the negotiation, divided into ideal one, real one and the fallback one.
The ideal scenario:...