Leadership project

Ongoing critical issues frustrated labor unions:

· Contract talks with Transport Workers Union Local 544, representing instructors and simulator engineers, have been "put on the back burner." [6]

· US Airways dispatchers, in TWU Local 545, earn 25 percent less and work six weeks more than American dispatchers. [6]

· Mechanics and fleet service workers"were in negotiations premerger, then ignored by labor relations while it negotiated with stand­alone American employees." [6]

· Customer service agents, said, "The vendors working for American are encroaching on our work at some locations and forcing the association to file grievances." [6]

· US Airways pilots said the airline's labor relations personnel have "failed to implement the required work rules and contractual provisions to bring equality to the pilots of US Airways," the letter said. [6]

· Separately, the US Airways pilots union filed a lawsuit asking for a federal arbitrator to decide how the seniority lists of American and US Airways pilots will be integrated. Seniority is key to routes, pay, schedules, and aircraft flown.[6]

Ongoing Employee Misery

Job Misery Is Universal1

The author notes that a "miserable" job differs from a "bad" job, as one person's dream job may not appeal to another worker. A miserable job, however, has some universal traits.

The three signs 1. Anonymity 2.Irrelevance 3.Immeasurement

2Mainly three problems we can say from investigation during merging of American Airlines/US Airways Merger A. Poor passenger service B. Questionable benefits for shareholders C. Ongoing employee misery

It looks like there’s no stopping the merger of bankrupt American Airlines with US Airways (LCC). The deal — expected to be announced no later than Friday — would employ 94,000 people, fly 950 planes, operate 6,500 daily flights in nine major hubs, and generate total sales of about $39 billion.

The combined companies — according to Reuters3, the all-stock merger would value them at $10.5 billion to $11 billion giving American’s creditors 72% — would lead in some markets and lag in others. According to the New York Times4, the new airline, to be called American Airlines, would be a “market leader on the East Coast, the Southwest and South America. But it would remain a smaller player in the Pacific and Europe, where United and Delta are stronger.”

Unfortunately, the pro-merger chest-pounding can’t hide the fact that combining two losing companies does not make a winner. That’s because the merger makes things worse for three key stakeholders of these airlines.

C. Ongoing employee misery2

While US Airways CEO, Doug Parker, has gained the edge over American’s employees, he has in the past failed to win over pilots.

For example, in April 2012, Parker “won the public support of American’s three main labour groups. More recently, pilots from both airlines agreed on how they would work together if the merger succeeded.”

But these discussions have not been concluded and according to the Times, in 2005, Parker merged America West, with the bigger US Airways. But in the last eight years, the pilots from America West and US Airways still lack a common contract and seniority rules so they can’t fly together.

Labor difficulties will not go away if American and US Airways merge. While in bankruptcy, American “cut thousands of jobs, reduced benefits, froze pensions, and sought higher productivity rules from its employees,” reports the Times.

With customers paying more for mediocre-at-best service, shareholders getting a financially challenged carrier, and employees continuing to pay the price for efforts to boost profits; I give this merger three thumbs down.

Further

American Airlines, US Airways Workers Vote Overwhelmingly To Join Union5

Thousands of service agents at American Airlines unionized with their new colleagues at U.S. Airways on Tuesday, making the most of last year's airline mega-merger.

In a combined union election, airline employees voted on whether to join CWA-IBT, a joint union of the Communications Workers of America and the Teamsters. An overwhelming 86 percent voted in favor of unionizing.

The election covered 14,500 employees who work at airport customer-service desks, airline call centers and, in some cases, their own homes. Nine thousands of those workers were previously non-union employees at American Airlines, while the remainder was U.S. Airways agents already represented by the union. The two brands merged last year to create the largest airline in the world.

References

1. http://career-advice.monster.com/in-the-office/workplace-issues/three-signs-of-a-miserable-job-hot-jobs/article.aspx