Labor Laws, Unionization and the Workplace

Labor Laws, Unionization and the Workplace

Introduction

Labor unions are playing a vital role in the airline industry of United States. About 50% of all workers working in the air transportation industry are unionized, 49.3% of workers being members and 51.6% are covered by the agreement in 2006 related to collective bargaining. Apart from Delta, all of the major US airlines are highly unionized, however regional and national carriers include a combination of union and nonunion workplace. In distinction, only 7.4% of United States workers related to private sectors was union members in 2006, in comparison with 21.7% in 1977 (Hirsh, 2007). Allied Pilots Association (APA) serves as the certified collective bargaining agent for all American Airlines pilots. It was formed in 1963 by a group of American Airline Pilots who broke away from the Air Line Pilots Association (ALPA). It provides services of traditional union representation services for its members.

The paper will focus on how Allied Pilots Association (APA) risks the future of American Airlines with their union demands. How recent updates of unionization in the U.S. air line industry are affecting American's situation is also discussed. Moreover, the changes needed in labor laws in the United States that will help to stop unions from hurting business are also discussed.

Discussion

Affects on Airline Industry

Airline industry is among the first sectors who suffer when business confidence declines as shipper switch to cheaper and slower sea options to the loss of air freight. People tend to spend less of air traffic during the times of recession. The airline industry has long been an unprofitable industry. Intense competition, increasing demand from union to raise the pay leads to the low profit conditions in the airline industry. American Airline industry is facing constant pressure from union in terms of different demands that has put the business operations of American Airline industry at stake (Nie, 2013). Increasing demands from union regarding rise in pay or benefits and stake in the company has put American Airline at a competitive disadvantage and even forced to bankruptcy.

Unions are an instrument of social change but when they play a larger role in society, their activities remained focused at workplace. Their principal engagement is with management and their actions extend to lobbying, politics and the community both at local and international levels. In the editorial of DeMaura, he said that Americans Airlines Allied Pilots Association rejected a concessionary contract offered by management. The contract included pay raise and a 13.5 percent of share in the company. In the times of recession, companies are forced to tighten their belts as profit margin declines but union workers do not want the impact of this on their pay and benefits. This put American Airlines at risk with the Allied Pilots Association (APA) union demands (DeMaura, 2012).

Labor Strife between American Airlines and APA

The labor strife between American Airlines and its pilots is greatly affecting the business operations of American Airlines. The Allied Pilot Association is grounding the flights and ...