The paper "Airline Industry Work Unions" is an exceptional example of a research proposal on human resources.
Airlines industry provides its services in every corner of the world and plays an important role in the creation of a global economy. It not only helps in traveling but also helps other related businesses such as tourism industry, aircraft manufacturing and so on. Work unions play a significant role in the airline's industry. They are the main source through which an organization conducts its operation.
This article provides some important information about the types of airlines industry unions and their existing role in the industry. Some of these unions included in the source are transport workers union, an association of flight attendants, the national association of air traffic controllers and airline pilots association. The different unions work together in order to keep the airlines business working and efficient. This means unions play a key role in the airline's industry. In the past, unions were always taken in a negative manner. They were considered a threat to a company. Mainly cost increased due to labor bargaining power. But presently, as per the research of Bailey and Kaplan, union-related aviation has changed this thinking and has formed a modern perspective of unions, who work for airlines productivity (Bailey & Kaplan, 2006).
It's the Labor Costs
Labor unions play a vital role in reducing or increasing the labor cost in the airline's industry. Boser’s study provides Eastern airlines as an example to explain the impact of labor unions on the Airline's productivity and cost management. According to this study, Eastern Airlines is presently facing many losses which resulted in increased work pressure on airlines labor unions, in order to prevent bankruptcy. The main reason for these losses is the lack of proper management. Due to the present condition of the economy, many employees in the airlines industry have lost their jobs, pensions, benefits and medical care also. In accordance with the US labor department union is the only way through which airlines can generate more money. Union airlines earn more as compares to non-union airlines (Boser, 2005). This study, hence, is of immense importance in the identification of the important role that labor unions play in the successful running of airlines business.
Convergence in the US Airline Industry: A Unit Cost and Productivity Analysis.
US airlines industry have shown a significant improvement after the recession on the basis of labor union negotiations. This research by Tsoukalas is, hence, more inclined towards emphasizing on the active involvement of labor unions in improving the devastated business performance. Tsouklas suggests that US airlines workers’ compensation program has been revised which lead to productivity and efficiency. These changes have helped many airlines to recover the losses which they had made for the last three years. However, it is very critical to revise the compensation plan of the work unions but if it is done efficiently it affects the profitability of airlines (Tsoukalas, 2007).
Airline Unions Seek a Share of the Industry Gains
A question which hasn’t been answered in the last 20 years is how the profits should be divided equally and to create stabilization in labor-management relations. There has always been a problem in the industry in relation to this question. In order to answer this future research should be conducted on the airline's industry in which other airlines should be taken as a benchmark, to study the distribution of profits among workers. Mouawad’s study provides reasoning and claims in order to prove the case of a share that labor unions should be awarded. Hence, airlines union also looks forward to gaining their share from the profitability of the company and in this case, all work levels should be treated equally in order to create stabilization (Mouawad, 2010).
Troubled Global Airline Industry Battered by Fuel Costs, Labor Problems
Yousfi provides a rather different view on the existence and role of labor unions. Yousfi’s analysis is much inclined towards the problematic situations that rigid labor union behaviors may present. According to Yousfi, most of the small airline businesses are either bankrupt or have been merged with other airlines due to high losses and less business. These problems had raised due to intense competition, weakening the economy and high oil prices. So, in order to increase profits and control the situation, many airlines are planning to merge but have not done that because labor unions have blocked their way. Most of the unions of airlines do not prefer to merge with other aviation companies. In fact, they are relying more on the company’s own efficiencies and are with the belief that if things are managed appropriately the present condition of airlines can be improved (Yousfi, 2009).
Wage Determination in the U.S. Airline Industry
Wages of workers directly affect airlines productivity. Hirsch, in this regard, suggests that airlines unions always have a threat of strike considering their wages. Therefore wage program should be handled carefully as unions are the financial strength of airlines. Most of the airlines in the US market have been deregulated in order to promote profitability by focusing more on labor unions. Airlines also offer premiums to the workers such as pilots in order to retain employees. However, airlines always keep a gap in pay scales of employees from a low level to high-level jobs (Hirsch 2006). This study is helpful in understanding the wages of workers, the effects of strike calls and labor productivity on the airlines business.
Boser, R. (2005, July 01). It's the labor costs, stupid!. Retrieved from http://www.airlinesafety.com/Unions/LaborCostsStupid.htm
Barry, T. H. (2006). Wage Determination in the U.S. Airline Industry: Union Power under Product Market Constraints. Retrieved from http://ideas.repec.org/p/iza/izadps/dp2384.html
Bailey & Kaplan. (2006) Airlines labor union. Cambridge, Mass.: The MIT Press.
Mouawad, J. (2010, Oct 27). Airline unions seek a share of the industry gains. The New York Times, p. B1. . Retrieved from http://www.nytimes.com/2010/10/28/business/28labor.html?pagewanted=all
Tsoukalas, G., & Massachusetts Institute of Technology. (2007). Convergence in the US airline industry: A unit cost and productivity analysis.
Yousfi, J. (2008, Apr 08). Troubled global airline industry battered by fuel costs, labor problems. Retrieved from http://moneymorning.com/2008/04/08/troubled-global-airline-industry-battered-by-fuel-costs-labor-problems/