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Essay On American Airlines

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In a televised interview on “CEO Exchange Mr. Don Carty, CEO of American Airlines discusses his frustration with labor cost. Now, American Airlines is facing a Chapter 11, bankruptcy filing. American Airlines is the world’s largest fleet of about 1,500 airplanes which serves international customers. Being the largest fleet, American Airlines employees around 113,300 employees that are overseen by three different unions. (“American Airlines – Wikipedia,”n.d.) The unions are made up of The Allied Pilots Association, The Association of Professional Flight Attendants and Transport Workers Union. The three unions had agreed to a 1.62 billion in annual concession, which was presented as retention bonuses and to protect the pensions for top executives. The concessions were said to keep the organization from filing bankruptcy, after a 1st quarter loss of $1.04 billion. (Under Fire for Perks, Chief Quits American Airlines – the New York Times, n.d.). Mr. Don Carty, CEO of American Airlines stated that there two major challenges. One which is better business motto “cost to premium is not bigger that our revenue to premium.” Identify the product elements that …show more content…

The presence of a union provides stability within the workplace by giving employees peace of mind with job security. In turn, this decreases the turnover rate among employees, because a nonunion company does not offer the same benefits. With lower turn-over rates employee belong to a union are more productive than a company without a union. Unionized employees enjoy the benefits of competitive compensation and better fringe benefits packet. Additionally, unions ensure that the workplace is safe and appropriate for employees. Which is a benefit to the company because a lower accident rate means that less money is spent worker compensation claims, lower healthcare premiums, and a decreases

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