WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #2,311
because the vast majority of those unions were seated when the airline industry was regulated and costs were freely passed on to consumers thru government price controls.Explain why the majority of airline employees ARE unionized.
It is hard to believe that you can't understand that the wave of bankruptcies that the legacy carriers all went thru was primarily intended to cut labor costs down to levels that were more competitive with the younger low fare carriers.
the irony of the industry is that unionization in the airline industry is on an upswing because these low cost carrier employees are tired of being fed promises with half-sized paychecks compared to their legacy peers. And the likely outcome is that the cost difference between legacy and "low fare carriers" will continue to close with labor rates between the two not much different. WN is a perfect example with their CASM which is now only 5% less than AA and DL. It is WN's productivity that sustains the wage advantage WN employees have but the productivity advantage is shrinking so wages cannot continue to grow as they once did.
DL has paid its employees at or above industry average for years and has strongly tied employee compensation to company performance, giving little incentive for DL employees to give up a system that is paying them far better than they would under a union system, esp. at a time when DL's profitability is so far ahead of the rest of the industry that it is hard to imagine any employees realistically gaining on a sustained basis.