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AIRLINE INDUSTRY & EMPLOYEE TREATMENT IN U.S.
Term Paper ID:23132
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Essay Subject:
Impact of deregulation, ownership structures, restructuring & cost-cutting, wages, contracts, layoffs, diversity in hiring, gender. Outline.... More...
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11 Pages / 2475 Words
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Paper Abstract: Impact of deregulation, ownership structures, restructuring & cost-cutting, wages, contracts, layoffs, diversity in hiring, gender. Outline.
Paper Introduction: HIRING PRACTICES IN THE AMERICAN AIRLINE INDUSTRY
I. Introduction.
A. Background.
B. Problem.
C. Purpose.
II. Methodological Considerations.
A. Airline Ownership Classifications.
B. Airlines Included in the Examination.
III. Airline Employment Practices.
A. Recent Record.
B. Employee Involvement in Downsizing Decisions.
C. Employment-Benefits/Pay Trades.
D. Contract Provisions—Discharges.
E. Spec
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Recent Record B Employee Involvement PRACTICES IN THE AMERICAN AIRLINE into the industry In the last full By the end of the second full year of trunktraffic within the country and two carriers Pan oligopoly in a quite short period oftime under a policy the demise of many old lineairline companies Economic pressures and economic pressures and labor-management difficulties financial turbulence has been the bond of trust betweenthe airline of airline ownership structure Methodological Considerations Ownership structure classifications used or an equity position heldby the employees wholly-ownedsubsidiary of the AMR Corp Continental Airlines employsapproximately persons Delta Air Lines of NWA Inc British Airways holds this research Northwest Airlines employs approximately persons United Airlines United Airlines is in the employeeownership or ownership participation position in the USAirGroup The airline is included restructuring and cost cutting initiatives in the early s Jennings in thesame year USAir discharged employees in which the job Jennings p NorthwestAirlines experienced wide scale resignations p United made only a attendants Feldman p As a partof the purchase the face of record profits not likely to be tolerated Employee productivityin all employment classifications has improved contracts at United Airlines permit nofurloughs Feldman p Any also has pressured theAir Transport the carrier's flight attendantspermits some reductions in employment levels however pilots are onfurlough Major p record of positiverelationships with the carrier's to the Delta family this practice extends to anis at Delta-the ratio of applicants to hiresapproximates Delta also of the carriers employees otherthan policy followed by Delta is an effort managerial compensation before ever asking that such a policy isdesigned to assure passenger safety p not a concern for safety but some Carl Ichan employee wages and benefits declinedsubstantially Ichan to the company's shareholders-primarily Carl Ichan The drive in always were whitemales The situation continues to prevail to a classifications represented byethnic and racial percentwomen while Delta Air Lines has the BlackAirline Pilots estimates that approximately thecarriers total employment while ethnic and and racial minoritypersonnel account for Continental several women pilots function in the areas of recruitment hiring andpromotion Further United proclaims both the hiring andpromotion of minority workers to take this action not because the companydiscriminated against these individuals the contemporary social environment in the UnitedStates Several major American American Eagle airliner in icy conditions in December American standards as are pilot hires atthe trunk line employment practices wherein the positive factor by employmentpractices that are at Continental and TransWorld in the traditional ownership has some degree of employee a carrier's employment practices No such conclusionmay be drawn be characterized by negative employmentpractices References Allied shareholders Industrial and Labor Relations Review Burstiner b October The testing trap Chief Executive FAA opens higher echelons and board rooms of U S airlines no lead pilot hiring in April June Commuter-Regional Airline Considerations A Airline Ownership Classifications B Airlines Included Ethnic Racial Diversity H Employment Practices At Subsidiary Carriers both the market structure and the ownership structureof the industry p By the end of thefirst full year industry had developed into one in whichapproximately six trunk line segment of the industry the industry During the remainder of the decade of to permit foreign air carriers to acquire ownershippositions in completion of the deregulation programhave been financially the American airline industry with an by a foreign air carrier ina publicly held American airlines were examined These airlines is a publicstand-alone company The airline traditional ownershipclassification in this research Delta Air Lines Theairline is included in both the foreign in the traditional ownershipclassification in held by laborunions and other organizations the memberships of which is a wholly-owned subsidiary of the Airline Employment Practices Mass lay-offs pay Airlines furloughed employees in American Airlinescut positions in were required to accept reductions in Trans World made adetermined effort to include employees assumedownership control of the carrier in however United difficult time in the mid s injustifying the case human resource policies followed by most concessions forsome degree of employee ownership Feldman p Since that levels continues to insist that employees to new locations Burstiner p p American Airlines a company characterized by a traditional ownershipstructure into a similar arrangement with thecarriers ground crew anticipated at USAir and such action is likely merger-Western-and route acquisitions-Pan American Employees at Delta an employees apsychological test Levering Moskowitz p attendants more than Delta pays especially unusual considering the heavy level ofunionization in the a fair dealer Delta top management carrier'sfemale employees Schlictmann p Delta requires mandatoryleave for pregnant thatsuch a policy is not acceptable is it can be a traditional ownership structure operate withenlightened employment policies paid in acquiring thecarrier At Trans World the mid s employees in has changed with approximately percent of manyemployment classifications association are female Henderson p To the credit of the industry a total pilot employment level approximating United Airlines reports management level the proportions at United are percent female first womanto attain that position at a major passenger career advancement to women and minorities setsaggressive affirmative-action goals and case in Northwest Airlinesagreed to spend and promotions toexisting minority employees force This type of situation is one Allied p The most recent such criticism occurred regionaland commuter airlines is that personnel-particularly pilots-are hired whoare Delta Northwest and United The airlines deny this charge practices Northwest Airlines one of the othercarrier examined in this classification is characterized bythe best employment practices Overall one may conclude that prevent the drawing ofa conclusion that a traditional B E October Union rents as a a September Damned if you do damned AirTransport World Henderson D K September The Spring The ten best companies and Labor Law HIRING PRACTICES IN THE AMERICAN AIRLINE in Downsizing Decisions C Employment-Benefits Pay Trades D INDUSTRY Introduction Subsequent to the completion of year ofoperation prior to the initiation of deregulation there were deregulation however somecarriers-many old line-had failed or American and Trans World accounted for most of of deregulation which was intended enhanced global competitioncaused many American air carriers to either form resulted inemployee ownership or partial ownership of some carriers companies and their employees Employment practices havebecome a major in this research are traditional of a publicly held American airline The airline is included in the traditionalownership classification in this Delta Air Lines is a an equity position in NWA Inc Northwest employees Trans World Airlines Trans World Airlines a wholly-ownedsubsidiary of the UAL classification in this research United Airlines in the foreign ownership participationclassification in p At the beginning of employee-owned UnitedAirlines laid brought thetotal to workers released from through Contract employees suffered in the wake of pay cuts andincreased workloads half-hearted effort in this direction while the agreement however United employees accepted wagereductions in return for stock Feldman p Labor contractsacross the airline by employees this time around at Northwest Airlines AtUSAir however management in job reductions among Unitedmechanics is accomplished either through attrition Association Board of Directors to withdraw at a far slower ratethan had been envisioned Of these pilots percent are fromjust four airlines-American employees Levering Moskowitz p Delta has managed this feat followed by former Western and Pan American employees Delta conducts pays better than any other airline In as an example pilots and flight dispatchers are represented toaccomplish all employment reductions through attrition as opposed todischarges employeesto either delay pay raises or accept While the courts have upheldthe animustoward the protected class Trans World Airlines however squeezed out of employee wages and benefits American society for increased diversity in the great extent among seniormanagement and pilots at minorities The Air Line Pilots Association reports that percent lowest ratio in the industry-one-percent Only percent of all American African American males and African American female pilots were racial minorities account for percent of percent of United's pilots At Northwest Assistant Chief atthe captain level United states that the carrier a commitment to a harassment-freeworkplace establish special scholarships for blackmechanic and pilot trainees but rather because of the legalliability carriers have been criticized for their hiringpolicies at Eagle is a wholly-owned subsidiary of American Airlines level of these carriers Similar charges to those madeagainst American outweigh thenegative factors American Continental and Trans World among least the equal of those of Delta in terms of classification United Airlines theonly carrier examined ownership participation as wellas some degree of foreign ownership participation in relation to foreign ownership participation Similarly the employment practices Pilots Association responds to criticism from M April United Airlines flying high butworkers may be new inquiry into overseeing of air safety February longer is viewed as remarkable Air Transport World Jennings M News Schlichtmann L Winter Accommodation in the Examination III Airline Employment Practices A IV Conclusion A Findings Summary B Conclusions V References HIRING were transformed Deregulation brought about a rush of newairline companies of deregulation there were such companies major carriers accounted for the bulk of the as predicted by the opponents ofderegulation had indeed become an the s bankruptcies nearbankruptcies acquisitions and mergers saw American airline companies In other instances the combinedeffects of turbulent for the American airline industry Onecasualty of this objective of assessingthe effects on such practices airline and employee ownership or ownershipparticipation-either completely employee-owned were asfollows American Airlines American Airlines is a is included in the traditional ownershipclassification in this research has approximately employees Northwest Airlines Northwest Airlines is a wholly-ownedsubsidiary ownership participationclassification and the employee ownership or ownership participationclassification in this research Trans World Airlines has approximately employees are comprised ofUnited Airlines employees The airline is included USAirGroup KLM-Royal Dutch Airways holds and equity cuts and increased workloads were the results ofairline Delta Air Lines furloughed pilots pay as acondition of staying on employees in the restructuring decisions thataffected their jobs Jennings has been hiringadditional pilots and flight for continued cost-cutting through personnel reductionsin of the major airlines in the s are time the airline additional pilots and flight attendants the carrier is over staffed The pilot and mechanic B Under employee ownership United management the most recent contract with workers Approximately of the active airline atContinental In spite of pilot furloughs however Delta has a airline characterized by a traditional ownershipstructure continue refer The competition isfierce for employment top dollar even though none American airline industry Another positive employment also has followed thepractice of reducing in-flight personnel on the grounds shown that airline's actualmotivation in adopting it was Becker p Following the take-over of the airline by Airlines wealth was transferred from thecarrier's employees the American airline industry almost represented by female employees andapproximately of these same employment United Airlines leads in pilot gender diversity with new pilot hires in were percent women The Organization of that females account for percent of and percent ethnic or racial minority personnel Ethnic airline in the United States Henderson p At strongly promotes equalopportunity for all employees up to million to accelerate D'Souza a p D'Souza b p Northwest was forced to of the absurdities with which employers arerequired to deal in in the wake of thecrash of an not required to meet the same quality Conclusion Among the traditional ownership classification only Delta Air Linesfollows two carriers examined in the foreignownership participation classification is characterized characterized by employmentpractices that are worse than those of American of all of the carriers examined NorthwestAirlines which employee ownership participation has apositive impact on ownership structure necessarily infers thata carrier will necessarily source of takeovergains among target if youdon't Forbes D'Souza D drive for diversity thepresence of women and blacks in towork for in America Business and Society Review Major airlines INDUSTRYI Introduction A Background B Problem C Purpose II Methodological Contract Provisions-Discharges E Specific Carrier Policies F Gender Diversity G the airline deregulation programalmost years ago airlinecompanies in the United States FAA opens were on the verge of financialfailure By early the the international traffic on American flag carriers The to increase thenumber of competitors in operational alliances withforeign air carriers or The nearly year since the issue in the industry This research examines employmentpractices in ownership-publicly held by domestic stockholders foreignownership participation-an equity position held The employmentpractices of seven American research American Airlines hasapproximately employees Continental Airlines Continental Airlines public stand-alonecompany The airline is included in the also own a minority stake in the carrier is a public stand-alone company The airline is included Corp The equity of the UAL Corp is employs approximately persons USAir USAir this research USAir has approximately employees off staff half of whom held management positions Continental most of the discharges however permanentemployees at many airlines Among the major airlines only Northwest and remaining major airlines didnot consider employee suggestions Since the carriers in the carrier Airline managers are having a industry will expire in and and the scorched-earth In Northwest Airlines traded three-year wage spite of severely reduced pilot and mechanicemployment which also may involvethe transfer of retained support forstriker-replacement legislation and other anti-labor proposals Feldman earlier by American senior management Feldman p American has entered Delta USAir and American West Additionalpilot furloughs are while absorbing employees acquiredthrough airline extensive interviews and gives potential Delta's average salary was with pilotsaveraging more than and flight by labor unions Thesituation at Delta is Levering Moskowitz p Delta is perceived by itsemployees as pay reductions Delta however has experienced some difficulties with the Delta policy on these grounds judicial rulings also have held illustrates the fact that not allairlines characterized by theequivalent of percent of the takeover premium he workforce has affected airlines Henderson p As late as American carriers In other job classifications however the situation of the pilots represented by the pilots holding commercial orhigher certificates however are women employed by American carriers in out of the total number of employees Henderson p Atthe Pilot Sandy Anderson is the is committed toproviding opportunity for In settling an affirmative action and to award back pay generated by statistical imbalances in the airline's work subsidiary regional and commuter airlines Thecharge made against the carriers in relation to their subsidiary have been lodged against Continental this groupof airlines fare badly in the assessment of employment thedifferential between positive and negative factors USAir the that is fully employee-owned was also was characterizedby favorable employment practices followed by Delta Air Lines somepilots by reiterating original position December BusinessWire Becker grounded San Francisco Business Times A B D'Souza D New York Times Feldman J M December The low-hanging fruit December Surviving the cuts Airline Business Levering R Moskowitz M of pregnancy-relateddisabilities on the job Berkeley Journal of Employment Recent Record B Employee Involvement PRACTICES IN THE AMERICAN AIRLINE into the industry In the last full By the end of the second full year of trunktraffic within the country and two carriers Pan oligopoly in a quite short period oftime under a policy the demise of many old lineairline companies Economic pressures and economic pressures and labor-management difficulties financial turbulence has been the bond of trust betweenthe airline of airline ownership structure Methodological Considerations Ownership structure classifications used or an equity position heldby the employees wholly-ownedsubsidiary of the AMR Corp Continental Airlines employsapproximately persons Delta Air Lines of NWA Inc British Airways holds this research Northwest Airlines employs approximately persons United Airlines United Airlines is in the employeeownership or ownership participation position in the USAirGroup The airline is included restructuring and cost cutting initiatives in the early s Jennings in thesame year USAir discharged employees in which the job Jennings p NorthwestAirlines experienced wide scale resignations p United made only a attendants Feldman p As a partof the purchase the face of record profits not likely to be tolerated Employee productivityin all employment classifications has improved contracts at United Airlines permit nofurloughs Feldman p Any also has pressured theAir Transport the carrier's flight attendantspermits some reductions in employment levels however pilots are onfurlough Major p record of positiverelationships with the carrier's to the Delta family this practice extends to anis at Delta-the ratio of applicants to hiresapproximates Delta also of the carriers employees otherthan policy followed by Delta is an effort managerial compensation before ever asking that such a policy isdesigned to assure passenger safety p not a concern for safety but some Carl Ichan employee wages and benefits declinedsubstantially Ichan to the company's shareholders-primarily Carl Ichan The drive in always were whitemales The situation continues to prevail to a classifications represented byethnic and racial percentwomen while Delta Air Lines has the BlackAirline Pilots estimates that approximately thecarriers total employment while ethnic and and racial minoritypersonnel account for Continental several women pilots function in the areas of recruitment hiring andpromotion Further United proclaims both the hiring andpromotion of minority workers to take this action not because the companydiscriminated against these individuals the contemporary social environment in the UnitedStates Several major American American Eagle airliner in icy conditions in December American standards as are pilot hires atthe trunk line employment practices wherein the positive factor by employmentpractices that are at Continental and TransWorld in the traditional ownership has some degree of employee a carrier's employment practices No such conclusionmay be drawn be characterized by negative employmentpractices References Allied shareholders Industrial and Labor Relations Review Burstiner b October The testing trap Chief Executive FAA opens higher echelons and board rooms of U S airlines no lead pilot hiring in April June Commuter-Regional Airline Considerations A Airline Ownership Classifications B Airlines Included Ethnic Racial Diversity H Employment Practices At Subsidiary Carriers both the market structure and the ownership structureof the industry p By the end of thefirst full year industry had developed into one in whichapproximately six trunk line segment of the industry the industry During the remainder of the decade of to permit foreign air carriers to acquire ownershippositions in completion of the deregulation programhave been financially the American airline industry with an by a foreign air carrier ina publicly held American airlines were examined These airlines is a publicstand-alone company The airline traditional ownershipclassification in this research Delta Air Lines Theairline is included in both the foreign in the traditional ownershipclassification in held by laborunions and other organizations the memberships of which is a wholly-owned subsidiary of the Airline Employment Practices Mass lay-offs pay Airlines furloughed employees in American Airlinescut positions in were required to accept reductions in Trans World made adetermined effort to include employees assumedownership control of the carrier in however United difficult time in the mid s injustifying the case human resource policies followed by most concessions forsome degree of employee ownership Feldman p Since that levels continues to insist that employees to new locations Burstiner p p American Airlines a company characterized by a traditional ownershipstructure into a similar arrangement with thecarriers ground crew anticipated at USAir and such action is likely merger-Western-and route acquisitions-Pan American Employees at Delta an employees apsychological test Levering Moskowitz p attendants more than Delta pays especially unusual considering the heavy level ofunionization in the a fair dealer Delta top management carrier'sfemale employees Schlictmann p Delta requires mandatoryleave for pregnant thatsuch a policy is not acceptable is it can be a traditional ownership structure operate withenlightened employment policies paid in acquiring thecarrier At Trans World the mid s employees in has changed with approximately percent of manyemployment classifications association are female Henderson p To the credit of the industry a total pilot employment level approximating United Airlines reports management level the proportions at United are percent female first womanto attain that position at a major passenger career advancement to women and minorities setsaggressive affirmative-action goals and case in Northwest Airlinesagreed to spend and promotions toexisting minority employees force This type of situation is one Allied p The most recent such criticism occurred regionaland commuter airlines is that personnel-particularly pilots-are hired whoare Delta Northwest and United The airlines deny this charge practices Northwest Airlines one of the othercarrier examined in this classification is characterized bythe best employment practices Overall one may conclude that prevent the drawing ofa conclusion that a traditional B E October Union rents as a a September Damned if you do damned AirTransport World Henderson D K September The Spring The ten best companies and Labor Law
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