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- Nov 4, 2003
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COLLISION COURSE
ABOUT THE FILM
Collision Course traces the dramatic rise and fall of workplace cooperation at Eastern Airlines. In so doing, the film uncovers the deep-seated assumptions which underlie our culture of industrial relations and prevent us from breaking out of our industrial impasse.
Collision Course begins in 1983 with Eastern hurtling towards bankruptcy, beset by years of labor-management hostility, high wage cuts, and a poor service record. An informative history traces this adversarial relationship back to the dawn of the wage system and the rise of scientific management.
When Eastern once again demanded wage cuts, the machinist union responded with a bold counter-proposal reconceiving the traditional "wage bargain" by giving workers both a 25% ownership stake and an unprecedented say in the company. It was the most profound change in labor-management relations in any major American Company.
The results were stunning. Autonomous work teams took over the shopfloor. Wage increases were tied to productivity improvements. Encouraged to use their brains, newly motivated "cost teams" invented ways to save the airline $100 million.
Yet when competitive pressures re-emerged, the innovative agreement was pulled apart by the very people who put it together. In 1986, Eastern was sold to Frank Lorenzo's notoriously anti-union Texas Air and soon thereafter went down in flames. Eastern's rise and fall provides a vital case study of the do's, don'ts, and maybe's of workplace cooperation.
The Video is available here if you are interested.
Eastern Airlines Collision Course Video
ABOUT THE FILM
Collision Course traces the dramatic rise and fall of workplace cooperation at Eastern Airlines. In so doing, the film uncovers the deep-seated assumptions which underlie our culture of industrial relations and prevent us from breaking out of our industrial impasse.
Collision Course begins in 1983 with Eastern hurtling towards bankruptcy, beset by years of labor-management hostility, high wage cuts, and a poor service record. An informative history traces this adversarial relationship back to the dawn of the wage system and the rise of scientific management.
When Eastern once again demanded wage cuts, the machinist union responded with a bold counter-proposal reconceiving the traditional "wage bargain" by giving workers both a 25% ownership stake and an unprecedented say in the company. It was the most profound change in labor-management relations in any major American Company.
The results were stunning. Autonomous work teams took over the shopfloor. Wage increases were tied to productivity improvements. Encouraged to use their brains, newly motivated "cost teams" invented ways to save the airline $100 million.
Yet when competitive pressures re-emerged, the innovative agreement was pulled apart by the very people who put it together. In 1986, Eastern was sold to Frank Lorenzo's notoriously anti-union Texas Air and soon thereafter went down in flames. Eastern's rise and fall provides a vital case study of the do's, don'ts, and maybe's of workplace cooperation.
NOTE: In this film, IAM President makes reference to the autonomous work teams taking over the floor in an attempt to "Save the Airline From Bankruptcy" and he calls the process "WORKING TOGETHER".
After watching this film, I am more convinced than ever that each of us should prepare for survival without a good paying airline job. The path of Eastern Airlines, mirrors our current path at AA.
The main basis for success in a "Working Together" union/management relationship is TRUST.
Ask yourself, when the pressure is on in an industry of such extreme competition, can you trust your airline management?
A Management that was caught hiding the SERP Program, a management that gives $100 million in management bonuses when the corporation is losing money, a management that gives the CEO 23% raises plus other perks when fuel prices and competition leaves the airline far from a stable financial environment. A mangement groping with $20 billion in debt.
The Video is available here if you are interested.
Eastern Airlines Collision Course Video