Project:
Economics
& Bargaining
Background:
Delta & the Delta Airlines Pilots Assoc (DAPA) are
engaged in contract negotiations.
The Pilots have given back wages & benefits over the
last 10 yrs. Their wages & benefits are 12 % below the industry
standard.
Delta had a long history of profitability, paying out
large dividends & stock splits. Beginning in the 90s they borrowed
to finance modernization. High interest payments, the increase in
fuel prices, & a decline in ridership since 9/11 have driven Delta
into bankruptcy.
The positions:
Delta is asking for a 9% pay cut, having pilots pay for
half of their health care benefits, a reduction in pension benefits, &
a cut of 15% of pilots.
The Pilots are asking for no pay cut, paying for 10% of
health care, no reduction in pensions, & no job reductions.
Other issues: Schedule flexibity, safety in the
air, training, future job security
Briefly, answer the following questions:
1. In relation to economics & unions, how are
the current negotiations framed by the issues of pac man economic, the
economic conditions of the 80s & 90s, & the pressures of globalization?
2. In relation of economics, deregulation &
unions, how are the current negotiations framed by deregulation?
3. In relation to economics, & changes in consumer
demand, how are the current negotiations framed by changes in consumer
demand?
|