groundcontrol
Veteran
- Oct 17, 2005
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Makes you go hmmmmm.....
Issue #5: Getting Union “Buy-In†for Contracting
Table Chair: Steve Kolski, AirTran
Issue Description:
• What tactics or strategies are available to get the cooperation of unions to go along with increased contracting (outsourcing)? It is submitted that there are several approaches that can be utilized and with the pros and cons of each approach.
• No one approach (tactic or strategy) will work for everyone. There is no “silver bulletâ€. What works for one carrier may not work for another.
Relevant facts/Background Information/Considerations:
• Many carriers with unions have scope clauses which limit
contracting (outsourcing).
• Bankruptcy has permitted some carriers to scuttle their scope clause.
• Some carriers not in bankruptcy have achieved modifications to their scope clauses through “concessionary bargainingâ€
• Another avenue is the development of a “win-win-win†approach to contracting (outsourcing). This approach utilizes the maxim that “the enemy is outside the fortâ€.
• Many carriers are hampered by the “one way street†that is present in their scope clause. That street says once you do it in-house, you can no longer send it out.
Recommendations for Addressing the Issue or Challenge:
2. If in bankruptcy, take your best shot at modifying your scope clause – you might never have another.
3. If not in bankruptcy, concessionary bargaining might work but admittedly it will be hard to reduce costs (by contracting) when it leads directly to a reduction in jobs.
4. Adopt the collaborative “win win win†approach with three winners(the Company, the employees, and the Union) and demonstrate that contracting (outsourcing) saves money which can be put to better uses by funding benefits for the remaining workers, keeping the Company competitive, and providing increased job security for the mechanic/inspector work force.
5. The industry needs to counter the negative reactions to contracting(outsourcing) that can be accomplished by:
a. Stop using the term “oursourcing†It has a negative connotation in some circles, including congress.
b. OEM’s have contracted (outsourced) for decades.37
c. Contracting does not mean “cheap†but it can reduce costs both in direct labor but more importantly in maintenance burden.
d. Airlines have, over the years, managed to increase maintenance burden far beyond that found in a Part 145 Repair Station or in an OEM.
e. A lot of contracting goes to the OEM. Surely, the OEM can produce superb maintenance on its own products.
f. Contract maintenance can be just as good if not better than maintenance performed in house. It is the carrier’s
responsibility to perform as much oversight on a contract
house as necessary to achieve this result. One or two reps
on a heavy check doesn’t constitute sufficient oversight.
g. If an airline isn’t receiving the quality it wants or expects from a contract house, it is the fault of the carrier, and no one else.
SOURCE:
http://www.aviationnow.com/conferences/htm...0stand%20for%22
Issue #5: Getting Union “Buy-In†for Contracting
Table Chair: Steve Kolski, AirTran
Issue Description:
• What tactics or strategies are available to get the cooperation of unions to go along with increased contracting (outsourcing)? It is submitted that there are several approaches that can be utilized and with the pros and cons of each approach.
• No one approach (tactic or strategy) will work for everyone. There is no “silver bulletâ€. What works for one carrier may not work for another.
Relevant facts/Background Information/Considerations:
• Many carriers with unions have scope clauses which limit
contracting (outsourcing).
• Bankruptcy has permitted some carriers to scuttle their scope clause.
• Some carriers not in bankruptcy have achieved modifications to their scope clauses through “concessionary bargainingâ€
• Another avenue is the development of a “win-win-win†approach to contracting (outsourcing). This approach utilizes the maxim that “the enemy is outside the fortâ€.
• Many carriers are hampered by the “one way street†that is present in their scope clause. That street says once you do it in-house, you can no longer send it out.
Recommendations for Addressing the Issue or Challenge:
2. If in bankruptcy, take your best shot at modifying your scope clause – you might never have another.
3. If not in bankruptcy, concessionary bargaining might work but admittedly it will be hard to reduce costs (by contracting) when it leads directly to a reduction in jobs.
4. Adopt the collaborative “win win win†approach with three winners(the Company, the employees, and the Union) and demonstrate that contracting (outsourcing) saves money which can be put to better uses by funding benefits for the remaining workers, keeping the Company competitive, and providing increased job security for the mechanic/inspector work force.
5. The industry needs to counter the negative reactions to contracting(outsourcing) that can be accomplished by:
a. Stop using the term “oursourcing†It has a negative connotation in some circles, including congress.
b. OEM’s have contracted (outsourced) for decades.37
c. Contracting does not mean “cheap†but it can reduce costs both in direct labor but more importantly in maintenance burden.
d. Airlines have, over the years, managed to increase maintenance burden far beyond that found in a Part 145 Repair Station or in an OEM.
e. A lot of contracting goes to the OEM. Surely, the OEM can produce superb maintenance on its own products.
f. Contract maintenance can be just as good if not better than maintenance performed in house. It is the carrier’s
responsibility to perform as much oversight on a contract
house as necessary to achieve this result. One or two reps
on a heavy check doesn’t constitute sufficient oversight.
g. If an airline isn’t receiving the quality it wants or expects from a contract house, it is the fault of the carrier, and no one else.
SOURCE:
http://www.aviationnow.com/conferences/htm...0stand%20for%22
