Former ModerAAtor cited an example in an earlier post. You did not challenge him.
Perhaps I missed it, refresh my memory.Just because I do not challenge every point he makes it does not mean that I am not in disagreement.
Your union contract is full of antiquated and inefficient rules.
Such as?
Here is what one industry analyst has to say:
Analysts or observers?Last time you said observers. Observers just look at the obvious, analysts typically dig a little deeper.
Perhaps the most critical element of the successful low-fare airline business model is significantly higher labor productivity than traditional network carriers. The difference lies in labor productivity, not in unionization or even wage rates. According to a recent HBS Case Study written by a member of our team, Southwest is the “most heavily unionized†US airline and its salary rates are considered to be at or above average compared to the US airline industry. The low-fare carrier labor advantage is in much more flexible work rules that allow cross-utilization of virtually all employees (except where disallowed by licensing and safety standards). Such cross-utilization and a long-standing culture of cooperation among labor groups translate into lower unit labor costs. At Southwest in 4th quarter 2000, total labor expense per ASM was more than 25% below that of United and American, and 58% less than US Airways.
Carriers like Southwest have a tremendous cost advantage over network airlines simply because their workforce generates more output per employee. In 4th quarter 2001, Southwest produced 542,050 available seat-miles per employee, as compared to 369,790 at American and 373,400 at United. By this measure, the productivity of Southwest employees is over 45% higher than at American and United, despite the substantially longer flight lengths and larger average aircraft size of these network carriers.
Well as I already told you AA has cross utilization. Its the way the company is set up that prevents them from using it. Rivalry between departments takes precedence over delivering the product. Perhaps the easiest way to cross utilize would be between Pax and cabin service however the company has resisted unionization of pax service so its not unreasonable for the union to resist giving up work to a non-union part of the company. Perhaps SWA takes a less adversarial position towards their unions. With the best pay rates and benifits going its obvious that the give and take goes both ways is it not? Despite that, the TWU has given AA the ability to cross utilize their members. Perhaps the author of the above article was unaware of that fact.
And another:
More will follow the example of Southwest Airlines, whose entire workforce, except managers, is unionized. By agreeing to contracts of eight to 10 years, with an opportunity to adjust them after five years if needed, union workers give Southwest executives the stability needed for long-range planning. They also accept flexible work rules aimed at pleasing customers while holding down costs, a formula that keeps the airline ahead of its rivals
So? Show me the language that supports the claim of more flexible work rules. How long is the term of your contract with your employer?
And yet another:
Union contracts do hinder productivity through restrictive work rules. Southwest has led the way in negotiating agreements that have more-flexible work rules. These more-flexible standards allow for greater cross-utilization of labor, resulting in much improved productivity. Labor expense per available seat-mile at Southwest is about 25% lower than at United and American, and about 50% lower than US Airways.
Go ahead, keep your head buried in the sand.
Articles written by industry analysts, (or are they observers?), who probably look more at spreadsheets than contracts, then rely on press releases and assumptions when commenting on labor are not very reliable. These exerpts certainly are not proof, just examples of like-minded opinions. The proof is in the contracts and as I've told you the company has tremendous leeway with their TWU contract which includes cross utilization. Once again, give me examples of the onerous terms in our contracts not generalized opinions that somebody else wrote.
