View the video Understanding Labor Relations and Collective Bargaining below . 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.
Please be sure to include the answers to the following questions. The minimum words for the Assignment is 800 words.
- 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?
Mr. Carty mentions involvement of the federal government in labor relations. What government agencies could he possibly be referring to?
What type of response to Mr. Carty’s comments would you expect from the unions that represent American Airlines employees?
Here is the site for the video
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