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
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
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 union counted their new wage in
Negotiating with objective criteria
1. Frame each issue as a joint search for
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
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
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
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.