Labor Relations and the Airlines

Paper Summary:

This paper discusses labor relations in the airline industry, noting how deregulation changed the nature of those relations and caused the airlines to seek more ways of cutting costs. This paper further discusses how 9-11 added to the costs for the airlines who were then forced to reduce salaries and divest pension plans, creating new tensions that have not yet worked themselves out.

From the Paper:

"Labor relations for some industries can be quite contentious, while for others accommodations are often made on both sides. The airline industry shows examples of both, and in general labor disputes in the industry show a pattern of change in recent years, with new forces at work and with many new concerns bringing in government action, including concerns about the effect of labor problems on safety in the light of potential terrorist acts. As von Nordenflycht and Kochan (2003) write, "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."

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