Understanding Labor Relations And Collective Bargaining, Don Carty

790 Words2 Pages

Labor Management Relations In the video, Understanding Labor Relations and Collective Bargaining, Don Carty, CEO of American Airlines expresses the frustration that many executives in a union environment face, labor costs. Mr. Caty announced executive retention bonuses within hours of convincing union members to wage and benefit concessions in order to save the airline from bankruptcy which did not go well with the unions. Unions are there to protect workers and set rules. Unions have many benefits for workers but also have many drawbacks for companies. They do bring about better wages, better benefits, a safer work environment, and stability and seniority benefits. Employees usually fight for unions when they feel they are being treated …show more content…

Caty comments that the cost structure is higher than revenue and most likely the Airline is taking other preparations as well. They could also be looking at commissions, materials, and overhead costs. In the video he states that cost isn’t bigger than the revenue premium. He states that you must identifies those process, service, and product that aren’t contributing to revenue premium. Then, focusing on those that are and aren’t contributing will help keep costs low. He wants to be able to find a better way to conduct labor relations. Looking at factors that are driving up costs and not benefitting customers need to be stopped. It will take a strategic plan to look at the value of all services and then see how to save from there. Being able to cut costs in services and then use that for wages is a great idea. However, the company is already close to bankruptcy so needs to cut costs all around. “While it is possible to squeeze higher productivity by packaging work more efficiently, the benefits achieved by doing so can often be outstripped by higher expenses in other areas, such as overtime rates, hotel costs, and daily allowances (per diems) (Krishnam, …show more content…

They include Interference, restraint, or coercion, Employer domination or support of a labor organization, Discrimination on the basis of labor activity, Discrimination in retaliation for going to the NLRB, and refusal to bargain. Basically an employer cannot try and persuade an employee to not unionize, interfere with any labor organization or encourage or discourage a membership. It must be up to the employee to make all his or her decisions when it comes to the union. This is a way to protect themselves and not have disruption in the workplace. An employer will be held in violation if it refuses to provide information, withholds information, or discriminate in any way towards the

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