Bargaining Agreements: American Airlines

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Bargaining Agreements: American Airlines In order to plan for a better future for American Airlines’ stakeholders, it is necessary to evaluate past and present labor-management relationships, including labor disputes, assessing how these stakeholders have assumed and directed power in negotiating the terms of contracts. Upon analyzing the collective mindsets and actions of the members of each stakeholder party, this paper evaluates the various roles of authority each stakeholder group maintains internally and experiences externally by looking at the histories and laws that govern these groups as predictors of future bargaining events, which in turn suggests that while it may be possible to sustain a final, solid collective bargaining agreement, it may not be probable. The long-term effects of a standing or binding agreement on the culture of labor-management relationships and American Airlines as a whole would primarily depend on financial costs incurred by the stakeholders. Mitchell, Agle, and Wood (1997) propose that there are classifications of stakeholders that are based on the levels of power that influence the legitimacy of a stakeholder’s relationship with an organization (p. 854). The results of this evaluation define which stakeholders are fundamental to decision-making. This can be applied to labor-management bargaining unit negotiations with American Airlines. The primary stakeholders of American Airlines Labor Contracts are American Airlines – AMR, the Allied Pilots Association, the Transport Workers Union (TWU), TWU’s Air Transport Division, the Association of Professional Flight Attendants, the Federal Government, and the general American public. Although technically only applying to Railroad employees, in 1888, the first Federal labor relations regulations were enacted (Congressional Digest, 1993, p. 1). “In 1926, the Railway Labor Act (RLA) was

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