AIRLINE BARGAINING PROCESS - Essay Example

Airline Bargaining Process Header: ABP Part Bargaining in airlines is a method by which the unions represents all workers in the bargaining unit and negotiates a collective agreement with the employer. It is chosen by the workers, recognized by the employer and is certified by the labor board. The major bargaining issues are job security, essential services, employment equity, work standards, pensions, vacations, life insurances, wages, hours of work, conditions of work and the issues relayed to disagreements between workers and employers. These include both wage and non-wage issues which are meant to be conducted carefully by the aviation unions and pilot unions. The labor agreement includes various basic procedures which are truly essential to be followed by the unions. According to the report on Aviation sector it has been advised that the “unions must not agree to long-term concessions but rather to define measures on a short-term basis.” (1) A tentative labor agreement calls for improved wages, job security and increased productivity and details a mutual commitment to labor partnerships and commitment towards employers. The election of the arbitrator should be done by both employer and union. The union and the employers have to go by the final decision taken by the arbitrator. The bargaining agent should be certified by the labor board as it represents all workers in the bargaining unit and negotiates a collective agreement with the employer. Once certified the union then has the legal right to represent all employees in the unit. The bargaining units determine the group of workers who are a part of the union, who are considered by the labor board as an appropriate group to bargain and those who are covered by the same collective agreement. The bargaining unit must pay union dues whether or not the members of the union. (2) Collective bargaining is the negotiation between a union and the employer for a collective agreement. Breaching it leads to various unhealthy labor-management relations. But “currently there is no centralized bargaining forum in the Aviation industry”. The changed law of “privatization for workers has also led to various strikes” placing “excessive demands on the unions and fragmenting worker solidarity”. (3) Such work rules are affecting labor-management relation to a lot. Transport labor believes that “merges and other corporate transactions must not be used as a means to extinguish existing collective bargaining rights and deny workers a union voice at a new or restructured company.” (4) The National Labor Relation Board (NLRB) is an independent federal agency and plays and important role in aviation bargaining. According to the National Labor Relations Act (NLRA), it governs the relations between unions and employers in the private sector. It guarantees the right of the employees to organize and bargain collectively (with or without the union) with their employers. It also determines proper bargaining units, conduction of elections for union representatives and also investigates the charges of any unfair practices by employers of unions. It also applies “strict standard in reviewing unions’ enforcement of exclusive hiring halls” as the employer may also hire employees “off the street”. (5) Unlike NLRA which adopts less interventionist approach to the way the parties are conduct collective bargaining or resolve the disputes under collective bargaining agreements, Railway Labor Act specifies both. It takes into account the negotiation and mediation procedures between the both parties and also suggests methods for resolving minor disputes. Part 2 Bargaining Proposal ‘Today Aviation’ is an airline facing financial crises. The workers of the aviation company present a bargain proposal in the joint negotiation meeting with the employers. Privatization, departmentalization initiatives and outsourcing has been opposed by the union. I as a part of Today Aviation Union want to put some of the reasonable demands before the management limiting the detrimental consequences for their members due to various wage and other non wage issues. We want the staff to be redeployed. And there is no such pressing need for the company to go for unpaid leave of absence, days off banked in special accounts and ending over time work without compensation. Wage cuts of pilots should be revised coming to the set bargaining table. We can also site an example of the increased performance of a ‘Lufthansa’ after reaching to an agreement with similar demands. The positive practices were agreed later on to rescue the company with adjustments from both the parties. “Among the positive measures and practices taken by the airlines to respond to the crisis we can refer to some good initiatives, such as the Lufthansa case. The company has reached an agreement with the Vereinigung cockpit (VC) pilot’s union and the Ver.di service sector union on a package of cost-saving measures..” (6) Union of Today Aviation also puts the point forwards that shifting to part-time work and, reductions in over time pay along with rime reduction without wage is not accepted. We prefer a pattern in labor costs due to productivity differentials within the industry. The pilot’s union of the aviation company also maintains that its members should always have a seven-day working week atleast prior to the time of crises as the quality pilots are short in supply. And as the part of pilots’ pay is based on company’s performance they already have the risk of losing a share of their annual income. Again Lufthansa can be cited as an example where the pilots were expected to “completely lose their bonus worth some 16% of their annual income in 2002.” I as a member of aircraft mechanics I want to put some of the non-wage proposals infornt of the management. Workers are asking for the better job training, improved medical coverage, pensions after retirement, equipment and staff support, vacations, life insurances of the workers etc. These are the basic needs of the workers in the aviation sector and is nothing outspoken in it. These are some of the most reasonable demands of the workers put forward by me as a responsible member of the union of ‘Today Aviation’. I’m sure the management will not disregard any of the demands kept by us. Part 3 Bargaining Counter-Proposal ‘Today Aviation’ is an airline facing financial crises. The workers of the aviation company have presented a bargain proposal in the joint negotiation meeting with the management. But we want to state that, considering the crises, the company is facing presently it is not pertinent to grant all the demand of the union. We have to work together for the betterment of the company. Taking into account the financial issues we have come to the decision that the company will have to take some of the strict measures for controlling expenses by various methods. The rates of the fuels are touching skies. The reduced airfares, the productivity-oriented outlook and tough competition in the aviation industry have led our company to crises. The workers will have to adjust to the given opportunities and pay structure to save the company. We will try to save the workers from the detrimental consequences but the low level of profitability has forced us to adopt a “short-term accountancy-driven exercise” as adopted by The Irish Aer Ligus to save their company. (7) To improve the profit and efficiency of ‘Today Aviation’ it becomes mandatory to cut the cost, to develop the new commercial options, to shift the trend to part timework and to go by the rule of unpaid leave of absence. Pilots will also have to face the 20% reduction of the work time without compensation and no seven day week working can be considered due to increasing competition in Aviation industry. It is obvious that “employees’ income will be contingent on companies’ performance” as also experienced by VC – pilot union of Lufthansa. Lufthansa’s pilot union as well as Ver.di service sector union made an agreement on “a package of cost saving measures which along with other measures” as that the “company will not fill vacancies, will reduce paid overtime by asking people to take leave and will suspend any recruitment for a limited time.” Similarly we also expect our workers to move on same grounds suppressing their demand till the time crises pass. As in the case of Dutch carrier KLM, which agreed on “postponing a scheduled pay increase, reducing some of the staff time off and trim jobs”. In this case the “company and the unions” worked “together to work out a viable solution” in 2002. (8) And regarding the non wage issues including better job training, improved medical coverage, pensions after retirement, equipment and staff support, vacations, life insurances of the workers etc. are already given adequately and no more changes will be made. The management is quite responsible for the betterment of their employees and has also considered their betterment in good times. But in the time of crises we expect some adjustment even from their side for keeping the performance of the company work well without any losses in such a competitive time only till the situation is under control. Notes: (1) Euro Found. Report on Aviation sector. European Foundation for the Improvement of Living and Working Conditions. (2) A CUPE mini dictionary of union language. February 8, 2001. 10 (3) Numsa.org. Barrett. Jane. Equity Aviation is Iniquitous. March 10, 2004. 13 (4) Transport Trades Department, AFL-CIO. Policy Statement No. F08-01. The Bargaining Rights of Aviation and Rail Workers under Siege. September 16, 2008. (5) US Aviation – Aviation Message Boards. September 7, 2007. (6) & (7) Euro Found. Report on Aviation sector. European Foundation for the Improvement of Living and Working Conditions. (8) Dutch. Report on Aviation sector. Sources: 1. Euro Found. Report on Aviation sector. European Foundation for the Improvement of Living and Working Conditions. November 13, 2008. 2. A CUPE mini dictionary of union language. February 8, 2001. November 13, 2008. 3. Numsa.org. Barrett. Jane. Equity Aviation is Iniquitous. March 10, 2004. November 13, 2008. 4. Transport Trades Department, AFL-CIO. Policy Statement No. F08-01. The Bargaining Rights of Aviation and Rail Workers under Siege. September 16, 2008. November 13, 2008. < http://www.ttd.org/vertical/Sites/%7B6F59B120-2C3D-4AB1-B7AE-6DB7D7864685%7D/uploads/%7B0B2380E9-9775-42C1-B9D3-8129FE2461C4%7D.PDF> 5. US Aviation – Aviation Message Boards. September 7, 2007. November 13, 2008. 6. Dutch. Report on Aviation sector. November 13, 2008 7. Interscience. Robert C. Marshall. Antonio Merlo. Department of Economics, Penn State University. Department of Economics, University of Pennsylvania and CEPR . November 13, 2008 8. NBAA Issues Brief: New Department of Labor Regulations July 22, 2004. November 13, 2008 Read More