After you have reviewed the above laws (attached), read the following articles concerning labor unrest at American Airlines.
American Air pilots’ union: No strike unless it is legal. (2012, August 30). Retrieved August 31, 2012, from http://www.reuters.com/article/2012/08/30/us-americanairlines-pilots-idUSBRE87T14O20120830 (attached)
DeMaura, S. (2012, August 13). Not just public unions: Private sector unions hurting business. Retrieved August 31, 2012, from Not Just Public Unions: Private Sector Unions Hurting Business (attached)
Saporito, B. (2012, October 8). The worst job in America. Time, 180(15), 1. Retrieved from Business Source Complete. (https://townhall.com/columnists/stephendemaura/2012/08/13/not-just-public-unions-private-sector-unions-hurting-business-n1037100)
Give a brief summary of the current state of union relations in the airlines industry in the United States. Then answer the following in a well-organized 4 page paper:
• If DeMaura is correct in his editorial, why would the American Airlines’ Allied Pilots Association (APA) risk the future of American Airlines with their union demands?
• Using additional research about unionization in the U.S. airline industry in general and American Airlines in particular, update where we are currently with American’s situation. How do the recent updates that you have found affect American Airlines employees? Are other U.S. airlines also in jeopardy because of labor demands?
• In your educated opinion (supported by your research) are changes needed in labor laws in the United States to help stop unions from hurting business?
Use at least 5 Trident Online Library sources plus any applicable background readings to help strengthen your discussion.
The paper should be 4 pages, not counting cover and reference pages.
TO BE RE-WRITTEN FROM THE SCRATCH
Labor unions and the airlines industry in the United States
United States airlines are currently enjoying a boom due to streamlining over the past few years, streamlining that included mergers and acquisitions.The streamlining was because of many carriers going bankrupt in the last decade, a situation that was attributed to generous base pay rates and work rules negotiated by the unions as a result of previous good profits. The current boom is also tempered by fractious labor relations between the airlines and staff. Delta Airlines suffered from their pilots picketing in 2016. Southwest pushed back purchase of new airplanes partly because of tensions with its pilots.This is despite the two airlines having a history of good labor relations where they have awarded good remuneration to their workers, relations that have made them some of the most financially successful airlines in the world(Bhaskara, 2016).
However, there were gains in the same year as three-year contentious negotiations between ULCC Allegiant Air and its pilots ended in mid-2016, with the pilots getting hefty pay rises and the airline’s safety record consequently improving (Bhaskara, 2016). United Airlines also reached agreements with its pilots and flight attendants, with the flight attendants getting a combined contract after six years of being treated as two separate workgroups following the merger of United and Continental.
After going bankrupt in 2011, American Airlines was forced into a merger with the smaller US Airways in 2013. The airline unions backed Doug Parker, the then CEO of US Airways, to become the CEO of the new American Airlines, forcing the management of the earlier company out(Koenig, 2017). Since then, the Allied Pilots Association (APA) and the flight attendants union have been in constant negotiation with the airline for better pay and working conditions.
Risks
APA risks the future of American Airlines with their union demands because they offer the company little or no flexibility in adjusting their costs to suit the market situation (DeMaura, 2012). In times of recession, the airline still has to pay high wages which becomes a weakness in the competitive landscape. The risk is exacerbated by fluctuations in oil prices that make continuity of profitability uncertain. Hence pay rates that are gained during times when prices of fuel are low become unsustainable when the ………………………………………………………………………………………………………………………………………………………………………………………………………………………………….fuel………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
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