Airline Labor Relations Essay Example

year.

The congress amends the Railway Labor Act to give the right of collective bargaining to airline employees, and this was made in 1936. While on 1939, ALPA signed the 1st contract with American Airlines, and this was considered to be the Association’s first negotiated agreement. (www.alpa.org)

The Association of Flight Attendants

According to their official website www.unitedafa.org, The Association of Flight Attendants (AFA) is considered to be the world’s largest labor union organized by flight attendants for flight attendants. They represent over 40,000 Flight Attendants at 26 airlines. Their goal is to have a better negotiation in terms of salary and benefits, proper working conditions and their work rules at airlines, and lastly, to improve safety while they are on the job. They are affiliated with the AFL – CIO.

IAMAW

Year 1888 when 19 machinists met in Atlanta Georgia who voted to form a trade union. At that time, they only earn 20 to 25 cents an hour for 10 hour day. During 1891, IAM local 145 asked for $3 a 10 hour day work. At 1895, IAM joined American Federation of Labor Law ( AFL).

As years passed by, members continue to rise as well with their wages. In 1926, congress passes Railway Labor Act which required carrier to bargain and prohibit discrimination against union member. And on 1953, IAM has contracts fixing wages and working conditions with their 13,500 employees. Until now, IAM continues to battle and protests some actions that would not be detrimental to their employees. (http://www.goiam.org/)

Deregulation Impact on Labor Relations

The Airline Deregulation Act of 1978

Congress deregulated

the airline industry in 1978 and this had made into the resolution as The Airline Deregulation Act of 1978. It phased out the government’s control over fares and service and allowed market forces to determine the price and level of domestic airline service in the United States. (Hecker, 2006)

Because of this deregulation act, the airline industry went momentous change. Low cost airlines such as Southwest had faced intense cost pressure. United and US Airways announce bankruptcy and because of this, various bad effects had taken place.

Labor contracts were considered void, and pension plans were terminated as well. Legacy airlines emerged from a regulated environment with relatively high structural costs, driven in part by labor costs, including defined benefit pension plan costs. (Hecker, 2006)

The purpose of Deregulation Act was to allow new and existing airlines to enter and serve any market they wanted. Lowering fares and expanding services will enable them boost competition. Congress has expected that an unregulated industry would attract new airlines and increase competition, thereby benefiting consumers with lower fares and improved service. (Hecker, 2006)