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QUESTION
Assess collaboration strategies involving employee and labor relations.
Instructions
View the video Understanding Labor Relations and Collective Bargaining. In this video, At the time of this interview on “CEO Exchange”, Don Carty was CEO of American Airlines. In this clip he expresses the frustration that many executives in a union environment face, labor costs. This video was prior to Carty’s being fired from his position at American Airlines for announcing executive retention bonuses within hours of convincing union members to wage and benefit concessions in order to save the airline from bankruptcy. Carty currently serves as CEO of Dell, Inc.
Requirements
Please be sure to include the answers to the following questions.
1.If Mr. Carty’s comments on labor costs being part of a cost structure that is higher than revenue are part of American Airlines positioning before contract negotiations, what other preparations is the company probably taking prior to the negotiation process?
2.Mr. Carty mentions involvement of the federal government in labor relations. What government agencies could he possibly be referring to?
3.What type of response to Mr. Carty’s comments would you expect from the unions that represent American Airlines employees?
SCRIPT:
4.Imagine you are a healthcare administrator whose organization is involved in contract negotiations.
5.What kind of preparation do you need to have prior to starting talks with union representation?
6.Most of the time the discussion involving pay increases or decreases will be the most heated.
7.As a member of the administration team what type of ethical implications do you have in fair labor talks? There are federal agencies who oversee the processes and there are rules in place to ensure the process is fair to both sides. As you view the video with Mr. McCarty, listen to how the negotiation process took place and the different views from those involved.
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