Preview

The Airlines and Organized Labor

Powerful Essays
Open Document
Open Document
1507 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Airlines and Organized Labor
Abstract

It became apparent that labor relations became a big problem for American Airlines when the pilots executed the sick out of 1999 because of the unfair business practices that American Airlines did by acquiring another airline and had a two tier wages. The union wanted a resolution and sometimes those are hard to come by.

Companies can be very productive if they have good labor relations with their employees.
When dealing with labor problems there many questions one must answer. How did you become aware that there was a problem? What goals, objectives, and tools/techniques did you use to frame the problem? What effects does this problem have on the organization? To what extent can this problem be solved? What are the causes and forces of influence? What measurements can be made to determine when the problem is solved? What defines the criteria for measuring a successful outcome? What alternative solutions can be identified? These questions can help identify, understand and solve the problem, if there is a possible solution.

American Airlines ' (AA) problems with organized labor, specifically the Allied Pilots Association (APA) in 1999, can be traced back to its actions in 1987 following the integration of Air Cal. In 1999; American Airlines pilots were involved in a sickout over the acquisition of Reno Air. The pilots had charged that American would not raise the salaries of the already lower paid Reno Air pilots and would begin to give routes to these lower paid pilots over the higher paid American pilots. Had American Airlines not already demonstrated this tactic with the Air Cal pilots, the American pilots might not have thought it would happen. It can be said that the integration of Air Cal is what brought American Airlines ' labor problems to the awareness of the United States public.

In order to better understand the problems facing American Airlines and its organized labor force, one must first frame the problem. AA and the APA



References: Cimini, Michael (1999); Profile of the American Airline ' Pilot Sickout; Compensation and Working Conditions, Winter 1999 http://www.triadcentral.org/mgmt/splan/projobj/index.cfm?printversion=true Foldvary, Fred (1999). Sickouts at Whose Expense? Editorial. Accessed October 25, 2005. http://www.progress.org/archive/fold77.htm Patkowski, Eric Hayes (1999). Pilots ' Union Sick-Out Grounds Airline, Judge Considers Hefty Fine. The Working Stiff Journal; Vol.2 #2, March 1999. http://uts.cc.utexas.edu/~rjensen/vol2no2/pilots.htm. University of Phoenix. (Ed.). (2005). Critical thinking [University of Phoenix Custom Edition e-text]. Boston: Pearson Custom Publishing. Retrieved October 24, 2005, from University of Phoenix, Resource, MGT/350- Critical Thinking Web site:

You May Also Find These Documents Helpful

  • Good Essays

    Patco Strike

    • 1007 Words
    • 5 Pages

    This research paper will inspect one of the most important events in the late twentieth century within the United States labor history. It has transformed the labor relations development to altitudes. President Ronald Reagan, in 1981 dismissed of approximately eleven thousand employees of the Professional Air Traffic Controller Organization (PATCO). It stood out as an event of unmatched worth during the labor decline era. The PATCO strike was among the expensive in the United States. Although, the PATCO strike was not the largest in history for America, it was substantial enough to involve eleven thousand air traffic controllers employed by the Federal Aviation Administration (FAA).…

    • 1007 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    The Wall Street Journal article (Sept. 24 2012) notes how “American Airlines continued to rack up high numbers of flight delays and cancellations, blaming a dispute with its pilots union. The union, meanwhile, denied that pilots disrupted flights unnecessarily."…

    • 256 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    With this, competition increased significantly and they faced challenge to reduce labour cost and enhance productivity. To reduce labour costs, American Airlines introduced a two-tier wage system that didn’t affect new employees much and lowered wages for new employees. Also, to facilitate productivity, they negotiated with all the workers for work rule concessions within the guidelines of Federal Aviation Administration (FAA).…

    • 470 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    On August 3, 1981, nearly 13,000 of the 17,500 members of the Professional Air Traffic Controllers Organization (PATCO) staged a walk out and strike. There were four main reasons the union members of PATCO decided to go on strike. First, to address the concerns by members who felt that their work was seriously undervalued and under-rewarded. The second reason was that the Federal Aviation Administration had neglected serious deficiencies in staffing and hardware reliability. Thirdly, their work week was unreasonably long, especially when compared to controllers overseas. The fourth reason for the strike was the FAA’s (FEDERAL AVIATION ADMINISTRATION) approach to management-union relations and the safety of the system.…

    • 1580 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The question can be is. How has the economy of the airline industry performed throughout the many decades it has been? In addition, what did the industry do as it has gone through many events that have challenged its survival? In this type of industry, we can say that it has seen their share of success in profits but has seen its share of overwhelming down trends. You can definitely consider there is this industry depends on the economy around it and solely affected by it too. The airline industry has seen highs when the demand for their services was increased and the decreases when events had a major impact on their survival of the industry. While there are obvious externalities that affect the outcome of this industry, there is more to it. Monetary and fiscal policies affect the industry. Along with everything that has affects this industry, there is a noticeable wage inequality that has intensified.…

    • 2884 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Just like in any other industry, if uncontrollable economic conditions take action it can cause certain consumer trends that may either hurt or help your current financial standing. American Airlines is affected by these economic changes on a yearly basis that alters their customers’ perceptions about the company which ultimately hurt…

    • 2498 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    The merger between AA and U.S Airways was necessary after chapter 11 of bankruptcy was filed. They had to get bankruptcy protection due to high cost of operation, labor relation problems, high fuel prices and a slowdown in travel demand. The merger was finalized in December 2013.…

    • 1821 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    At the end of 2004, Air Canada employed 33, 124 employees worldwide. Air Canada operates within a unique lexicon of human resource relationships; the company employs workers from ten different unions, some of which include Canadian Auto Workers (CAW), Canadian Union of Public Employees (CUPE), International Association of Machinists and Aerospace Workers (ACPA), and Air Canada Pilots Association (ACPA). Historically, the relationship between employees, their respective unions, and Air Canada top management has been characterized by considerable animosity. These antagonistic relations had a direct impact upon the nature and outcome of organizational change at Air Canada.…

    • 4668 Words
    • 19 Pages
    Powerful Essays
  • Satisfactory Essays

    On February 2, 2012, American Airlines announced they will be cutting 13 thousand jobs to save a billion dollars. The biggest cuts are about 4,600 and…

    • 264 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    America West told Bachelder when it fired her that it based its decision on her sixteen absences since the January 1996 corrective action discussion (Walsh, 2013). If those absences were, in fact, covered by the Act, America West’s consideration of those absences as a “negative factor” in the firing decision violated the Act (Walsh, 2013). The regulations allow employers to choose among four methods for calculating their employees’ eligibility for FLMA leave, but they do not specifically state how an employer indicates its choice (Walsh, 2013). America West contends, correctly, that the FLMA’s implementing regulations do not expressly embody a requirement that employers inform their employees of their chosen method for calculating leave eligibility (Walsh, 2013). The regulations nonetheless plainly contemplate that the employer’s selection of one of the four calculation methods will be an open one, not a secret kept from the employees, the affected individuals (Walsh, 2013). This is where the airline made an error. The question remains whether America West adequately notified its employees that it had chosen the retroactive rolling “leave year” calculation method (Walsh, 2013). America West contends that, because its employee hand book states that “employees are entitled to up to twelve calendar weeks of unpaid FMLA leave within any twelve month period,” it provided sufficient notice to its employees that it uses the “rolling method” for calculating leave eligibility (Walsh, 2013).…

    • 552 Words
    • 3 Pages
    Good Essays
  • Best Essays

    3. Wallace Hendricks, Peter Feuille, and Carol Szerszen (1980, October). Regulation, Deregulation, and Collective bargaining in airlines. Industrial and Labor Relations Review. Vol. 34, no. 1, pp. 67-81. Retrieved from www.jstor.org…

    • 4943 Words
    • 20 Pages
    Best Essays
  • Good Essays

    Aviation Safety

    • 833 Words
    • 4 Pages

    Kaps, R. W. (1997). The View Of The Unions. In R. W. Kaps, Air Transport Labor Relations (pp. 239-241). SIU Press.…

    • 833 Words
    • 4 Pages
    Good Essays
  • Better Essays

    American Airlines has been suffering for many years. The company has suffered more losses than profits. Jobs have been cut; benefits have been scaled back, and the pilots of American Airlines are paid a lot lower salaries than their competitors. Many of them have been furloughed. All of these and many other factors have contributed to American deciding to create the world largest airlines with US Airways. In this essay I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger.…

    • 1366 Words
    • 4 Pages
    Better Essays
  • Good Essays

    The U.S. Airline Industry

    • 1205 Words
    • 4 Pages

    The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.…

    • 1205 Words
    • 4 Pages
    Good Essays