The Airline Industry Is The Most Unionized Industry,...

The airline industry is the most unionized industry, therefore â€Å"the labor cost in unionized airlines is about 35% of the unit cost in North America and it is also the highest cost component of airline business† (Malik, 2016). Moreover the federal aviation regulation require airlines to flight with pilots who has the specific training and experience at the airline. Therefore when the union strike it is very difficult for the company to just find other pilots and continue its operations, giving the airlines union greater reward than other industry unions. â€Å"An investor in a unionized U.S. airline should not expect to see a return on the investment and, should expect an eventual Chapter 11 bankruptcy† (Greenspun, 2010). Therefore the†¦show more content†¦According with Ron Defeo, spokesman of American Airlines â€Å"their philosophy is to provide industry-leading pay when contracts are signed† (Reed, 2016). Additionally if the union agreed to sign the contract in 2015, it means the conditions were better than other companies in the industry. However if the current conditions in the industry are less favorable for the employees, will the union accept a renegotiation of the contract to decrease the salaries? I don’t think they will accept any change to the contract before the stipulated date. In my opinion this is the main reason why companies are disappearing and many people are unemployed, because in rare occasions unions are willing to compromise and contribute to the success of the company. After employees saw how American Airline ranked sixth on competitive salaries compared with other companies in the industry they are thinking to leave the Allied Pilots Association and join the larger Air Line Pilots Association, because they felt their interest were not well represented by APA. 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