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As for most union disputes, the results of a negotiation usually will end in one way. For Trans World Airlines (TWA), there was never happy moment. Although,TWA reigned as one of the largest airlines if it's time, it wasn't the most successful. Established in 1926, the airline experienced a multitude of changes that would deem the company to be unsuccessful. Later on in the companies history, a man named Carl Icahn invested $300 million into the company, mainly to have a control of the company. His goal was to lower the cost of labor by receiving pay concessions, which would increase employee productivity. This agreement would give pilots a 30% concession ($100 million) and a 15% concession ($50 million) for machinists. With these concessions, …show more content…
the flight attendants would receive a pay of 20%. The flight attendants disagreed with the percentage being cut.
They believed that their pay cuts should be less or equal to the machinists. According to William Jolley (Frankovich's lawyer), " Icahn argued that the flight attendants were not breadwinner in the same sense that the mechanics were" (Kaps 31). Therefore, elucidating the suspicion of Icahn being sexist. As the disputes continued, Icahn finally agreed to settle with 17% pay cut as long as the their work was extended to two hours. The flight attendants still did not agree with the terms of the negotiation and continued to pursue better hours. Icahn believed that if the concessions were met and the hours were raised, flight attendants go from 6,000 to 5,000. Therefore, resulting in a gradual increase in savings. But, the flight attendants did back down from there goal due to the necessity of their pay checks. According to the book, " flight attendants were in their thirties and had families who depended on them as breadwinners; 45% had dependent children" (Kaps 32). As an action to resolve the dispute with TWA, the flight attendants went on …show more content…
strike. Mediation Board: Though the National Mediation Board, the strike was declared in March. Clearly, the tense relationship between TWA and it's flight attendants was accompanied by rude statements. Frankovich and Icahn both stated that the strike was caused by one another and that their posts would not be left until changes were made. With this strike, TWA anticipated on losing nearly $50 million on the strikes alone. Therefore, numbers of flights were being cancelled because of the lack of flight attendants. Icahn immediately utilized their training facility and trained 1,500 new attendants, which charged a fee for the training. Although the had proper training, they were not promised a job. Reinforcements: At the time, the new flight attendants were being paid at the low salary of $12,000 (annually).
Although the new attendants were to obey the rules implemented by Icahn, the feeling them and the previous flight attendants were soon to be mutual. According to the article, “400 attendants, out of a force of 6,000, had crossed the picket line. Along with the 1,200 replacements, TWA needed only another 2,300 to enforce its new rules, which would leave approximately 3,300 of the striking attendants out of work if the union did return because Icahn promised to keep the new attendants on the payroll.” (Kaps 33). This action continued the stand-off between TWA and the flight
attendants. Returning to Work: As the new flight attendants were finishing their training, the dispute between the older employees and TWA was coming to a halt. Nearly 1,300 union members returned to work under the old agreements, wages, and hours. This would force them to pay union dues to support the still streaking remain in the employees. Although the people were returning to their positions, the strikers were allowed back and put on a waitlist for there job to still exist when they came back to work. The Air Traffic Controller strike of 1981: In 1981, The Air Traffic Controllers Organization went on strike to change: unfair work practices, overly worked schedule, salaries, and their retirement packages. The air-traffic controllers believed that if they streaked, the movement of aircraft would cease and ultimately be victorious. As the negations commenced, the FAA proposed an offer to the counter the $770 million the the air-traffic controllers were demanding. According too nvdatabase.edu, “the FAA put forth a $40 million counteroffer, including a shorter workweek and slight pay hike for some controllers” (nvdatabase.edu). This offer was not accepted by the air-traffic controllers and stayed in contested. Soon after, Ronald Reagan announced that if the streaking air-traffic controllers were not at in 48 hours they would be fired and banned from any government job. Only 1,300 of the 13,000 returned to work while the rest were fired. American Airlines’ Flight Attendants Strike in 1993: In a similar case, American Airlines’ flight attendants went on a strike to fight for: better benefits for retirees, less staff, and scheduling (Bryant). They started their strike before the weekend of thanksgiving, which is usually the busiest time at the airport. Nearly all of the 21,000 flight attendants went on strike. Which would cease the American Airlines’ business and force them to seek replacement attendants. Although the attendants were on strike, they planned to return to work in 11 days. Conclusion: In my history of jobs, I’ve never worked for our under union. Although I’ve never worked for a union I've been a dependent of a union worker. My father worked as a Sheriff Deputy for thirteen years and currently as an Investigator. With law enforcement jobs, the issues with pay and working conditions aren't disputed that often. The issue that gets brought up the most is retirement plans. The aviation industry and law enforcement are completely different fields, the possibility of death at work is very high. I completely support these two fields and what demand from their employers. I believe that the risk of death should be compensated for, generously. Although striking may cause a disruption in the operations, the voice of the employee should be heard and respected.
At the trial, after Sue calls her witnesses, offers her evidence, and otherwise presents her side of the case, Tom has at least two choices between courses of action. Tom can call his first witness. What else might he do? (See Following a State Court Case.)
Despite attempting to predict the eventual outcome of the negotiation, I did not anticipate the confrontations between Local H-56 and the management of Hotel Zinnia. Although they initially agreed to engage in integrative bargaining, the union and management subsequently entered an intense negotiation. When Local H-56 presented its proposal of wage increases and health insurance, management immediately responded with a counterproposal that surprised the union. Both the union and management eventually behaved confrontationally, accusing each other of bargaining unreasonably and focusing on the trivial aspects of the negotiation. Moreover, as the union and management felt increasingly frustrated, they suffered from a lack of unity in their teams. The union could not fulfill its objectives because its lead negotiator prevented other team members from contributing to the negotiation. On the other hand, several team members of management struggled to assert their authority as the lead negotiator. After observing these issues, I ultimately believe that the union and management failed to achieve their individual objectives. Moreover, by approaching the negotiation with a zero-sum strategy, I assert that the union and management failed to reach a mutually beneficial contract. At the same time, both sides of the bargaining table lacked cohesive teams and therefore struggled under the pressure of the negotiation.
At the Homestead Steel Works outside Pittsburgh, which had been purchased by Carnegie in 1883, the chairman blamed the Amalgamated Association of Iron and Steel Workers for low production, and with the expiry of the collective bargaining agreement approaching, he saw an opportunity to reduce the union’s power. Carnegie, who was an open supporter of unions, nevertheless agreed with Frick in the case of Homestead, because he considered AA to be a corrupt organization that did not properly represent the workers. In fact, only about 800 of the 3,800 employees at Homestead were members of AA (Krass 277).
The main cause of the strike was when the American Federation of Labor (AFL) started to hire unskilled workers into the steel industry. The skilled jobs that the AA worked in were starting to fade away. The AA was not pleased,
Tensions between union supporters and management began mounting in the years preceding the strike. In April of 1994, the International Union led a three-week strike against major tracking companies in the freight hauling industry in attempts to stop management from creating $9 per hour part-time positions. This would only foreshadow battles to come between management and union. Later, in 1995, teamsters mounted an unprecedented national union campaign in attempts to defeat the labor-management “cooperation” scheme that UPS management tried to establish in order to weaken the union before contract talks (Witt, Wilson). This strike was distinguished from other strikes of recent years in that it was an offensive strike, not a defensive one. It was a struggle in which the union was prepared, fought over issues which it defined, and one which relied overwhelmingly on the efforts of the members themselves (http://www.igc.org/dbacon/Strikes/07ups.htm).
The less the workers were paid, the more was put away into the pockets of the higher-ups. While Andrew Carnegie seemed passive in letting Mr. Frick take over the management, he initially was allowing problems to ensue because he was also looking for more money to enter his pockets. Unions stood in the way of this goal because their job is to protect the workers. The way management handled the flaring situation only fueled it because they were not scared of the consequences. The management knew they were negotiating terrible offers to the union. Their goal was to maximize output with little to no cost. In time, management was criticized for how they handled the situation. Management was requested to re-think everything that was going on by Mr. Carnegie. “"This is your chance to re-organize the whole affair," Carnegie wrote his manager.”Far too many men required by Amalgamated rules." Carnegie believed workers would agree to relinquish their union to hold on to their jobs. After the strike occurred it could be said that with management winning the battle not much changed within the company right away. The strike also pushed back a lot of progress the union had made while working with
In their first attempt to get noticed, workers formed the National Labor Union in 1866. This union joined together various workers in order to create a group that would fight for what they wanted: higher wages and shorter workdays. As the years went by, the National Labor Union did their best in trying to achieve their goals, all while other groups took the matters into their own hands. In 1877, in what became known as the Great Railroad Strike, railroad workers from across America took part in a spontaneous strike on America’s railroads, an attempt that led to violence and, to their dismay, no changes to working conditions. In response to the strike, The New York Times published an article that stated “But if the strike on the Baltimore and Ohio Road is a foolish one, its history up to the present time shows that those who are engaged in it are not only bold and determined, but that they have the sympathy of a large part of the community in which they live…” (Document B). The editorial states that even if it wasn’t worth it, the Great Railroad Strike showed that there is something amiss in their daily lives, and whatever it is, they are trying to fix it for t...
against their employers, employees were able to go on strike and prove a point. Some
Magic Carpet Airlines (MCA) is in the midst of a collective bargaining negotiation with a union and this paper will present the case from the union’s side of the bargaining table. First, one must understand the meaning of collective bargaining negotiations; this is when both sides of the negotiations discuss wages and others perks and then come to an amicable agreement. Collective bargaining is not a simple negotiation process, because the employer and the union usually meet on more than one occasion, due to the fact that union negotiators must keep their members informed during the process and they must also present any offers to their constituents for a yes or no vote to accept said terms being offered by the employer. The textbook offered the Magic Carpet collective bargaining as a case study and students were asked to analyze the issues being negotiated, determine ways
On July 17, 1996, Trans World Airlines flight 800, A Boeing 747-100, exploded and crashed into the Atlantic Ocean near New York 12 minutes after its departure. All 230 people on board died.
Southwest Airlines: A Case Analysis. ORGANIZATIONAL ANALYSIS It is evident that the greatest strength Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.
The last bolt is screwed on as a relieved automotive worker marvels at his wondrous creation: a car. With the roar of an engine, the car slowly disappears into the distance. The worker gradually turns around, picks up his tools, and continues to work on a new car. As a consumer, we rarely wonder how things are made; we simply take everything we own for granted. For once, have you wondered how many hours of hard labor many automotive workers must go through? The automotive industry has been around for many years, but it has not always been as efficient as it currently is. As the industry continues to evolve, many new innovative ideas are still being developed. In the past, automotive workers have had to work in harsh conditions without much security or job benefits. Nevertheless, through the continuous development of organized collective bargaining, workers are being treated as they should be. Being the largest automobile manufacturer in the world, General Motors Corporation has been greatly affected by the needs of their workers. Rick Wagoner, CEO of General Motors, is currently in charge of “running the show” at GM. Being the most successful automotive company since 1931, it is obvious that he not only has to satisfy customers, but also the workers within the company. From the smallest things such as a work raise to bigger things such as the working condition, the management of General Motors has been pressured to make both positive and negative changes to the way the company is run as a whole in order to satisfy the workers who are part of the UAW Union. Therefore, the formation and development of unions encompasses both pros and cons.
With WWII on the horizon in the early 1940’s, Americans knew they must produce goods for the cause. Production was greatly needed and worker’s shoes needed to be filled. Labor Unions stepped up and proved to be extremely productive and fruitful. Although productivity was high, Union strikes began to brake out. Labor Union employees felt suppressed under the growing power of the unions and work stoppages were at an all time high in 1944. Acts such as the Taft-Hartley Act of 1947 and Landrum-Griffin Act of 1959 were passed to protect Union workers, however the corrupt unions had left employees feeling used and disrespected. The abusive reputation of unions still stands today as the public and employees find it hard to trust such massive corporations with dishonest pasts.
There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014. Even after the retirement he was still active with the Southwest Airlines that reflected his enthusiasm and dedication for the
These conditions led to massive anger. Workers were joining unions like the American Federation of Labor (AFL) in growing numbers, seeking a solution to their difficult circumstances. Unfortunately, the AFL leadership tried to win favor with the bosses by siding with them and rigging the union structures to maintain their privileged positions. But these lead to defeats for the workers and there demands.