Academic journal article Monthly Labor Review

Airline Update

Academic journal article Monthly Labor Review

Airline Update

Article excerpt

A 3-month strike against Alaska Airlines ended when members of the Machinists union approved a contract proposal that included a two-tier pay system and productivity improvements, including more flexible work rules and greater use of part-time employees. The contract also included an open-shop provision, which means that workers in the bargaining unit need not be members of the union.

Four unions agreed to purchase Frontier Airlines using savings resulting from wage concessions negotiated with the carrier. The $210.8 million buyout price was subject to approval by Frontier's board of directors. The four unions are the Air Line Employees Association, the Air Line Pilots Association, the Association of Flight Attendants, and the Transport Workers. A fifth union, the Machinists, apparently will not participate in the buyout.

Northwest Airlines and the Machinists agreed to a 40-month contract that includes a two-tier pay structure. Under the provision, new hires will be paid 21 to 50 percent less than the 4,500 current employees. After 5 years of service, the new workers will move up to the higher pay scale. The contract also provides for a pay increase totaling 10.1 percent over the term. After the final increase on July 1, 1987, maximum rates will be $18.50 for mechanics and $16.80 for equipment service workers.

USAir and the Association of Flight Attendants negotiated a 2-year contract that includes a two-tier pay provision. …

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