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announced ESOP
m Acquire 55% of co.·s stock
m 25% to pilots ( constitute 10% of force)
m Developed cost saving & morale
boosting measures
m Flight attendants not included- short
lived positive results
m Damaged customer service
m In 2000 , employees stopped receiving
esop
m New employees couldn·t participate ,
not allowed to cash till they retire
m 1997 , value declined to 50%
m Labor refused to fly over time ² lost loyal
customers
m Evolved into longer term problem
m Labor relations is a key strategic issue for
organizations because the nature of the
relationship between the employer &
employees can have a significant impact
on morale , motivation , & productivity.
m Benefit can be
a. economic ² negotiating for higher wages ,
greater job security
b. social ² sense of community , personal
issues
c. political ² negotiating with management
for terms & conditions of employment
m It gives right to unionize & to regulate
union/management relations.
m B. permissive items ²
Benefits for retired employees ,
supervisory compensation & discipline ,
union input in pricing of company
products & services
m C. Prohibited items ²
Feather bedding , discrimination in hiring
m Unions attempt to increase security of status
by bargaining for
Î ã
Require new
employees to join union after initial employment
period
Î 2
Require employees
who choose not to join union to pay
´representation feesµ to cover union·s cost of
representing them
Î ë
Employer deducts
union dues from paychecks of union employees
m Failure in bargaining negotiations to reach agreement
(impasse) may result in a strike or lockout
m Economic strikes
Î Results due to when both the parties negotiated but couldn·t
come to a conclusion
Î Striking workers can be permanently replaced in economic
strikes
m Unfair labor practice strikes
Î Employees strike in response to management·s unfair labor
practices
Î Striking workers cannot be permanently replaced in unfair
labor practice strikes
m Wildcat strikes
Î Unauthorized strikes by workers who walk out in violation of
collective bargaining agreement
Î Labors can be removed permanently from their job
m 1. _hrough use of formal grievance
procedure