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Joanne
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Experience:  BSc (Hons) Political Science
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for joanne, As much as we dont like to hear it the labor

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for joanne,
As much as we don't like to hear it the labor costs are really hurting the "legacy carriers" such as United, Delta, American, and US Air. Over the years labor has built on their wages and benefits which now add up to some very substantial costs. When you look at carriers such as Southwest and Jet-Blu they are not saddled with the same cost structure which allows them to compete on higher margins. elaborate.

250 words. 7 dollars.
Submitted: 5 years ago.
Category: Homework
Expert:  Joanne replied 5 years ago.

Joanne : noted working on it
Customer:

i need this answer tonight please.

Joanne :

Opponents against labor unions are not inaccurate to say unions do result in high costs of operation in the form of high wages and benefits which make it difficult for the organizations to compete. Due to high costs incurred by the need to offer extensive benefits and high wages to employees, firms such as United, Delta and American Air are not able to be more competitive because they are less able to offer lower prices or engage in advertising and marketing to reach out to consumers. On the other hand, other firms who do not face such strong union strength do not face similar troubles since they are able to adjust wages and benefits which allow them to better compete.


This cost structure problem is highly problematic and difficult to resolve because it is highly unlikely that employees would be willing to give up the benefits which they currently enjoy. In my opinion, one of the root problems behind such a problem would be the lack of a sense of belonging and loyalty among employees as such they only view the company as a place or an avenue to get as much benefits or income as possible. Therefore, the employees are not really interested in the competitiveness or challenges of the organization but instead place more emphasis on own benefits even though they may come at the expense of worsening the performance of the organization. As such, it is important to cultivate a sense of belonging and loyalty among employees to the organization so that employees can be more flexible and also prioritize the survival of the organization before their own welfare which is more likely to result in a win-win situation for both parties.


 

Joanne :

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