Collective Bargaining Agreement and Airline

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Collective Bargaining Agreement and Airline Powered By Docstoc
                            EWHA GSIS IB
                     Jaeyoung Alleich Shin

<International Negotiation & Strategies, Jasper Kim>
 Negotiations for the MCA-LFA
 Magic Carpet Air
- merged both MCA and RCA flight
- entered into a marketing agreement with a
  major national carrier and became a
  “feeder” airline for that carrier
 League of Flight Attendants
- both MCA and RCA flight Attendants worried
  about what they perceived as the arbitrary
     1996-97 Regional Airline Industry Comparisons

Airline                  Starting               Days off               Duty Rig* as
                         Wage/hr                /month                 Airline
                                                                       (% of time)
A                        $17.00                 11                     60
B                        $15.00                 12                     62
C                        $15.00                 12                     None
D                        $14.00                 13                     None
E                        $14.00                 10                     None
F                        $13.50                 10                     33
Magic Carpet             $13.00                 10                     None
    *Duty Rig is a pay calculation that is a certain percentage of the period of time
    which a flight attendant is on duty with the company. Duty time normally begins 45
    minutes prior to first schedules trip departure time and ends 15 minutes after arrival
    time at the end of the day.
 the LFA negotiating committee devised an
  opening offer based on the average working
  conditions and wage rates for flight
 Negotiations for the second contract also
  went smoothly. In terms of contract
  provisions, the second contract was basically
  an extension of the first, with a modest pay
  increase and one additional paid holiday. The
  agreement was effective until August 31,
   The LFA negotiating committee hoped to bring wages
    and work rules in line with the company‟s financial
    performance and industry standards.
   the LFA negotiating committee devised an opening
    offer based on the average working conditions and
    wage rates for flight attendants offered by other,
    similarly sized carriers.
   They looked at wage, unemployment, and cost-of-
    living data from government sources such as the
    Monthly Labor Review.
   The committee members knew the financial history
    of MCA and kept their proposals within financial
    reach of the company. They also used other employee
    groups(e.g., pilots, mechanics) within MCA as a
    guide- many of the LFA proposals were items that
    these others unions already had in their contracts.
 The     negotiating committee indentified four
     strategies for achieving its objectives
     through bargaining.

a.    Keeping union members informed of negotiation progress
b.    Getting union members involved
c.    Convincing the company that the union‟s demands were
d.    Settling an issue only with the unanimous consent of the
      negotiating committee.
 The    Union‟s Initial Position
-   They made goal the as 3 norms ; „change, new,
    clarification‟ They proposed the same language for a
    revised grievance procedure as that printed in the pilot‟s

 The    Company‟s Initial Position
- The negotiators were surprised by the counterpart‟s
  proposal using calculations and standards of industry.
  However, they kept saying “no” during the first session of
  the contract negotiation.
 Both parties were amicable and wanted to
  have good relationship
 The company accepted all the proposal from
  the counterpart
 The union counted their new wage in
  average standard
 Negotiating with objective criteria
1.   Frame each issue as a joint search for
     objective criteria.
2.   Reason and be open to reason as to which
     standards are most appropriate and how
     they should be applied.
3.   Never yield to pressure, only to principle

      The Union‟s victory is from the
        attachment to the principle.
 The Union separated the bargaining subjects
 they didn‟t have to throw themselves in the
  game theory
 The Union broke their demands into pieces
  and forced them step by step with principles.
 They also used the mood of previous
  negotiation with pilots. - ‘Pilots won, We
  should stay in winning in some parts.’
Changes in the Magic Carpet Air-League of Flight Attendants Contract

Contract Provision         1994-97 contract       Union proposal
Base Wage                  $13.00                 $15.45
Wage after 5 years         $20.20                 $25.55
Duty rig Pay               None                   1 hr pay / 2 hr duty(50%)
Daily guarantee            3.25 hrs               4.5 hrs
Holiday Pay                None                   8 holidays at double-time
Job security
Successorship              None                   Contract will be binding
Protection of seniority    None                   Arbitrator combines MCA
rights in the event of a                          seniority list with that of
merger                                            the other airline
Working conditions
Trip trading lead time     5 days                 24 hours
Shoe allowance             None                   $100/year
Winter coat                None                   Total cost
Uniform maintenance        $16/month              $20/ month
   using calculation for making right standard and
    information is strong bargaining power in negotiation.
    With a little research, it‟s more helpful to pursue the
    goal against high position party.
   If someone stay only in high position, they would lose
    their openness to make the position keep high.
   They would lose their alternatives in front of the
    right and proper reasoning. Information approach is
    the best in negotiation.
   In conclusion, the position doesn‟t matter in the
    bargaining and the Mood, Art are impossible to care
    for critical change. Only the science stimulates the
    reason to bargain, add to that information with
    amicable intend and strong but moderate principle
    make the success of each side in negotiation.

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