Labor Laws And Unions Essay

837 WordsMay 6, 20124 Pages
Labor Laws and Unions Rehana Siddiquee HRM/531 April 30, 2012 Donald Kilgore University of Phoenix Labor Laws and Unions American Airlines: Brief Background The "American Airlines" (2011) website, American Airlines founded in 1930 and formerly known as American Airways, Inc. It started with more than 80 small airlines in The Aviation Corporation. Then in 1934, American Airways officially became American Airlines Inc. By the end of 1930’s American Airlines became number one leading domestic air carrier in the nation. At the beginning, the airlines headquarter was originally in New York City, then in 1979, American Airlines headquarter moved to Fort Worth in Texas. That led them to become one of the largest airlines in the world. American Airlines operates international and domestic flights throughout North America, the Caribbean, South America, Europe, and the Pacific and also it operates on average 3,400 daily flights in approximately 250 cities in over 40 countries. In the United States the airlines has five hubs and they are: New York, Los Angeles, Dallas/Fort Worth, Chicago O'Hare, and Miami. Among them Dallas/Fort Worth is the airlines largest hub. American airlines Inc. is a subsidiary company of AMR Corporation (HISTORY OF AMR CORPORATION AND AMERICAN AIRLINES). Identifying legal issues and obstacles: According to Barrett & Farahany, LLP (2012), “In 2011, American Airlines company lost more than $900 million in just one month” (AMERICAN AIRLINES CONSIDERING EXTENSIVE DOWNSIZING). So the company was trying to cut significant costs and restructure the business to continue its operation. Therefore, the airlines company decided to layoff around 13000 union workers, terminate its pension plans and cut back of health benefit for both current and retired employees. Since the union workers felt like they are not being treated

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