Read “Taking Responsibility: High-Flying Labor Relations at
Southwest Airlines” at the end of Chapter 14. Answer the three questions at the
end of the case in a 2-3 page paper. Follow the project guidelines below.
Requirements:
1. Complete
a 2-3 page paper (not including the title page and
reference page).
2. Answer
each question thoroughly.
3. Demonstrate
your understanding of the information presented in the weekly reading
assignments by defining terms, explaining concepts, and providing detailed
examples to illustrate your points.
4. Include
at least two references from your reading assignments, or other academic
sources, to reinforce and support your own thoughts, ideas, and statements using
APA citation style.
TAKING
RESPONSIBILITY: High-Flying Labor Relations at Southwest Airlines
Even at a time when air travel has
become associated with long lines, cramped seats, and invasive security,
Southwest Airlines has maintained its reputation for keeping customers happy.
To accomplish this, Southwest does not merely deliver passengers from one point
to the next, it also tries to keep up their spirits by hiring and motivating employees
to deliver a sense of fun. And it has managed to do that—and stay consistently
profitable—with a unionized workforce. At the heart of this success is the
company’s principle that “well-treated employees translate to well-treated
customers.” The company’s stated objective for labor relationships is to
develop “solid relationships” through “communication, transparency, and
consistency.”
Southwest has called itself “the
most unionized airline,” reporting that more than 80% of its employees are
union members. The airline’s 6,000-plus pilots have been represented by the
Southwest Airlines Pilots’ Association (SWAPA) since 1978. Its flight
attendants have been represented by Local 556 of the Transport Workers Union
since 1975. At the time, the company had just 54 flight attendants, and the
motivating issue was to establish written work rules. Under Texas law,
employees could choose whether or not to join. Only about one-third signed up
until some of the members tackled what was for them a nagging problem: the
required uniform of hot pants, which constantly drew unpleasant, unwanted
attention. With that engaging issue to back, most of the rest of the attendants
joined the union, and they successfully pushed through this fundamental change
in working conditions.
Joe Harris, Southwest’s senior labor
relations counsel, has represented the company in negotiations since the 1970s.
He says the company’s history of constructive labor relations is a reflection
of attitudes at the top. According to Harris, Southwest’s founder, Lamar Muse,
and the CEO who succeeded him, Herb Kelleher, both took the attitude that union
representation was a reasonable option for employees, who “needed an effective
voice,” so the company would work with them. That tone is echoed by SWAPA,
which notes that before it began representing Southwest’s pilots, the pilots
and management cooperatively developed work rules promoting safety and
efficiency. SWAPA adds, “That cooperative spirit has continued through the
negotiation of eight labor contracts.” Likewise, a historical note published by
the flight attendants union says that at Southwest, “we have some of the best
working conditions in the industry.”
That attitude hardly means that
unions and management see eye to eye on everything. Negotiations can be
adversarial. But once a contract is in place, both sides again turn their focus
to the company’s long-term well-being and the customers’ satisfaction. That
shared focus can pay off for employees in practical ways. During the severe
recession that began in 2008, the company avoided layoffs, and by 2010, it was
actually hiring.
Southwest’s latest labor relations
challenge will follow its acquisition of AirTran Airways. With employees at
both companies coming from different unions, the parties have to agree on who
will represent the employees of the combined company and what level of
seniority each employee will have relative to the others. In terms of flight
attendants, for example, 10,000 Southwest employees are represented by the
Transport Workers Union, while 2,400 AirTran employees are represented by the
Association of Flight Attendants. Expectations are that with Southwest being
the larger, acquiring business, the TWU will represent all the flight
attendants, and that AirTran’s wages and benefits will be increased to match
those of the relatively generous Southwest.
Questions
1.
Contrast the general labor relations
goals of South-west’s management, its employees’ unions, and the society in
which it operates. Where are those goals in conflict, and where are they
consistent?
2.
Would you say that Southwest’s labor
relations help promote the company’s sustainability (ability to make a profit
without sacrificing the resources of its employees, community, and
environment)? Why or why not?
3.
What advice would you give Southwest
for its labor relations following the acquisition of AirTran?
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