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Labor contract negotiations in the airline industry

Source: www.bls.gov
Topic: Airline Industry

Sort Desciption: in the airline industry. Airline labor negotiations take 1.3 years, on average,. to conclude, and about half go into Federal mediation; ...

Content Inside: 18 Monthly Labor Review July 2003 Labor Contract Negotiations Labor Contract Negotiations Labor contract negotiations in the airline industry Airline labor negotiations take 1.3 years, on average, to conclude, and about half go into Federal mediation; much of the variance in the duration of negotiations can be attributed to which particular airlines and unions are bargaining, not to economic conditions Andrew von Nordenflycht and Thomas A. Kochan Andrew von Nordenflycht is a graduate student in the Sloan School of Management, Massachusetts Institute of Technology, Cambridge, MA ; Thomas A. Kochan is George M. Bunker Professor of Management, Institute for Work and Employment Research, Sloan School of Management. I n the wake of a sizable slump in demand driven by the confluence of economic downturn, terrorism, war, and disease, as well as in- creased competition from low-cost carriers, many incumbent U.S. airlines have been attempting a fun- damental restructuring of their operations. Arguably, a central element in this restructuring involves labor contract negotiations. Yet, even before the events of September 11, 2001, observers perceived strains in the industry’s labor relations system, claiming that contracts were taking longer to negotiate, rank-and-file rejections of tentative agreements were more frequent, and job actions were on the rise. Not surprisingly, then, calls for reform of the Railway Labor Act—the law that has governed airline collective bargaining since 1933— have gained momentum. Recent work has demonstrated that carrier-level differences in the duration of contract negotiations are associated with the quality of the labor- management relationship and, consequently, with airline productivity, customer service, and profit- ability. 1 Although the mechanisms of cause and effect are complex, changes in the regulatory framework could enhance the industry’s pro- ductivity and level of service. However, debate on reforming the Act ...

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