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3140 Ch. 16 Flashcards | StudBud
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3140 Ch. 16
3140 Ch. 16
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Answers
1
What event led to the formal abolishment of the wage formula and hour rules mentioned in Decision 83?
Creation of the National Labor Relations Board
Adoption of the Civil Aeronautics Act of 1938
Implementation of the Airline Deregulation Act of 1978
Passage of the Air Mail Act of 1934
2
How did the balance of power in collective bargaining change after the PATCO strike and the recession?
Management had leverage due to the availability of replacements/strikers
Labor unions gained significant public support
Unions realized that strikes were an effective bargaining tool
Labor unions became more unified
3
What is the general consensus among labor economists regarding labor costs and the airlines' financial crises?
Labor costs have been the primary cause of airline financial crises
Labor has increased since the passage of the Airline Deregulation Act 1978
Labor costs have not been a significant factor in airline financial crises
Labor costs have remained constant since deregulation
4
What does the term "pattern bargaining" refer to in the airline industry?
Bargaining for wage reductions
Bargaining between individual airlines and unions
Seeking to improve the most recent agreements signed by other airlines
Negotiations over different time periods
5
What was the purpose of the mutual aid pact (MAP) among major carriers in 1958?
To provide strike insurance for employees
To establish government regulation of labor disputes
To promote competition among airlines
To prevent labor unions from gaining power
6
How are arbitrators chosen for voluntary arbitration under the RLA?
Chosen by the NMB
Chosen by a combination of carriers and labor organizations
Chosen by the union representatives
Chosen by the carriers
7
How many separate unions were certified within the airline industry in 2021?
10
Over 30
3
5
8
Why did Congress pass a bill in 1936 to place airlines under the RLA?
To encourage disruption of airline service
To promote yellow dog contracts
To strengthen company-sponsored unions
To address labor issues in the airline industry
9
What was the main focus of labor unions' efforts in the airline industry by the late 1950s?
Gaining above-average wage increases
Expanding airline routes
Increasing automation
Reducing government regulation
10
Which airline union represents pilots in the aviation industry?
IAM & AW
NATCA
ALPA
AFA
11
In 1986, how many airlines entered the year with all three essential components for future viability?
10
None
3
5
12
What impact did the lower unit operating costs of new entrant airlines have on established carriers?
It led to fewer job opportunities for airline employees
It resulted in government regulation of fares
It forced established carriers to reduce their fares
It led to higher fares
13
How does the RLA differ from the National Labor Relations Act (NLRA) in terms of litigation involvement?
Neither RLA nor NLRA encourage litigation
Both RLA and NLRA encourage litigation
RLA encourages litigation
NLRA encourages litigation
14
What was the advantage of using smaller twin-engine jets for new point-to-point airlines?
Reduced competition
Lower fuel costs
Lower unit operating costs
Greater passenger comfort
15
What percentage of total operating costs did employee salaries and benefits fall below for major carriers by 1992?
50%
37%
22%
10%
16
What percentage of the nonagricultural labor force was union membership at its peak in 1953 in the United States?
5%
15%
75%
34%
17
Which organization represents the interests of flight attendants in the airline industry?
Association of Flight Attendants (AFA)
Railway Labor Act (RLA)
National Air Traffic Controllers Association (NATCA)
National Mediation Board (NMB)
18
How did start-up airlines sometimes acquire smaller twin jets for low-fare services?
They leased them from established carriers
They had no access to smaller twin jets
They had them custom-built for their operations
They purchased new aircraft directly from manufacturers.
19
What was the key feature of American Airlines' approach to labor cost reduction in August 1983?
Outsourcing labor
Offering profit-sharing plans
Implementing a two-tier wage scale
Reducing the number of employees
20
What is the purpose of the 30-day cooling-off period after the failure of arbitration under the RLA?
To allow parties to change working conditions
To encourage a strike
To postpone any work stoppage
To enforce arbitration decisions
21
Which organization is responsible for mediating labor disputes in the airline & railway industries in the United States?
National Air Traffic Controllers Association (NATCA)
Railway Labor Act (RLA)
Association of Flight Attendants (AFA)
National Mediation Board (NMB)
22
Which airlines had strong balance sheets in 1992, among the 12 major carriers in the industry at the beginning of 1991?
All 12
Northwest and USAir
American, Delta, United, Southwest, and Federal Express
Eastern and Pan Am
23
What is one of the challenges mentioned in the context of human resources in aviation organizations?
Low demand for multilingual employees
A surplus of human skills
Lack of skills exclusivity
Overemphasis on salary and benefits cuts
24
What is the primary emphasis of the Railway Labor Act (RLA) regarding collective bargaining?
Preserving the status quo
Encouraging strikes
Allowing unilateral changes by carriers
Promoting litigation
25
What is the term for an agreement between labor unions to support each other in times of strikes or labor disputes?
Employee assistance program
Collective bargaining agreement
Grievance procedure
Mutual Aid Pact
26
What strategy did some airlines use to cut labor costs, such as Continental Airlines in September 1983?
Outsourcing all labor
Reducing the number of flights
Temporarily going out of business
Offering voluntary wage concessions
27
What was the major destabilizing element affecting collective bargaining during deregulation?
Increased government regulation
Intense labor strikes
High fuel costs
Competition from new-entrant carriers
28
How does the RLA process affect labor unions' use of strikes compared to the NLRA process?
RLA process encourages strikes more readily
RLA process has no impact on strikes
RLA process discourages strikes more readily
RLA process is identical to the NLRA process regarding strikes
29
What is the annual economic impact of the aviation industry on the U.S. economy?
$560,000
$1.6 billion
$1.6 trillion
$11 million
30
What type of labor union typically represents workers with specific skills or professions within an industry?
Service union
General union
Craft union
Industrywide union
31
How did industry attitudes toward unions change in the late 1970s?
They remained the same as in previous decades
They became more welcoming and supportive.
They became less welcoming, similar to the early 20th century
They shifted to advocating for increased government regulation
32
What was the response of Comair pilots to management's proposal in 2001, leading to an 89-day strike?
They went on strike to demand higher wages.
They refused to accept the settlement and went on strike.
They accepted the proposal without any objections
They proposed a counteroffer to management
33
Which airlines had labor costs accounting for only 20 to 24 percent of total operating expenses in 1986?
Republic, Frontier, Transamerica
American, Delta, United
Braniff, Western, Pan Am
Continental, Southwest, newer carriers
34
In the early 1980s, what was the average compensation for employees at new airlines compared to the industry average?
About the same
Slightly higher
Double the industry average
More than one-third below
35
Why did the new entrant airlines enjoy lower unit wage costs compared to established carriers?
They had higher employee seniority.
They were generally nonunion companies
They offered a higher level of passenger service
They used larger aircraft
36
What percentage of total operating expenses did labor typically represent for airlines before deregulation?
Around 20%
Less than 10%
Over two-thirds
Over one-third
37
What was one of the key objectives of airline management during negotiations in the consolidation period?
Relieving scope clauses
Decreasing productivity
Seeking overall cost reductions
Increasing fringe benefits
38
Which act served as the model for the National Labor Relations Act (NLRA)?
The Aviation Labor Relations Act (ALRA)
The Airline Labor Act (ALA)
The Railway Labor Act (RLA)
The National Mediation Act (NMA)
39
How would you describe the Millennial generation in the context of the workplace?
Expectation-driven and self-motivated
Traditional and conforming
Quiet and obedient
Passive and disinterested
40
What major event in 1981 significantly impacted the airline industry?
The introduction of low-cost carriers
The firing of air traffic controllers
A severe economic recession
A surge in fuel prices
41
What percentage of jobs in the U.S. scheduled airline industry in 2021 was provided by network airlines?
94%
21.4%
62.2%
14.5%
42
What caused airline preoccupation with protection of market share before deregulation?
The absence of competition
Concerns about labor strikes
Mutual aid pacts
Government regulation of routes
43
What type of disputes are settled by system boards of adjustment under the RLA?
Mediation disputes
Major disputes
Strike disputes
Minor disputes
44
Which of the following airlines is an example of new-entrant carriers in the 1980s?
United Airlines
Southwest Airlines
Delta Airlines
American Airlines
45
What is the focus of discussion regarding labor trends in many airlines?
Increasing salaries and benefits
Use of part-time and fixed-term staff
High job security for all employees
Extensive unionization
46
What is industrywide bargaining in the context of labor negotiations?
Unions negotiate separately with different airlines
Each airline negotiates its own agreement with a labor union
Airlines collectively negotiate with the government
Labor unions negotiate collectively for all airlines in the industry
47
What program allows employees to become partial owners of the company they work for through stock ownership?
Retirement savings program
Employee Stock Ownership Program (ESOP)
Pension program
Health insurance program
48
What was the major change in the airline industry brought about by the jet age?
Decreased profitability
A shift in transportation preferences
Increased automation
Reduced labor requirements
49
When did Congress place commercial airlines under the Railway Labor Act (RLA)?
1970s
1930s
1990s
1950s
50
Which airline requested mediation for the first time in its history in 1986 during difficult negotiations with pilots?
American Airlines
Delta Air Lines
United Airlines
Southwest Airlines
51
Which airline is an example of profitability without demanding concessions from labor due to its unique approach?
United Airlines
American Airlines
Delta Air Lines
Southwest Airlines
52
How did the passage of deregulation laws affect the ability of airlines to pass on high cost increases to passengers?
It led to government intervention in pricing
It made it easier to pass on cost increases
It made it difficult to pass on cost increases
It had no impact on fare structures
53
What is the primary purpose of the National Mediation Board (NMB) in the collective bargaining process under the RLA?
To mediate disputes between parties
To represent carriers
To facilitate litigation
To provide binding arbitration
54
What event in 1990 led to the airlines suffering $4 billion in losses and the first decrease in air travel in a decade?
The rise in fuel costs due to the Persian Gulf crisis
A decrease in competition
Labor strikes by airline employees
A surge in passenger demand
55
Which type of bargaining involves negotiations that cover multiple companies within the same industry?
Individual bargaining
Company-specific bargaining
Craft union bargaining
Industrywide bargaining
56
Under what circumstances might a president intervene in labor disputes in the airline industry?
When the NMB recommends arbitration
When both parties agree to arbitration
When the NMB determines a strike could lead to a national emergency
When the NMB fails in mediation
57
What was the primary government priority during the early years of the airline industry?
Deregulation
Market entry
Economic stability
Predatory competition
58
What is the primary challenge mentioned in making human resource strategies adaptive?
Maintaining a stable workforce
Dealing with cultural differences
Finding the right staff
Controlling labor costs
59
What are some of the barriers to productivity improvements?
Work rules and craft lines
Employee resistance to change
Government regulations
High wages
60
What is the term for a temporary board appointed to resolve labor disputes in the transportation industry?
Industrywide board
Mediation board
Emergency board
Craft board
61
According to Sir Richard Branson of Virgin Atlantic Airways, what should be the priority order for organizations?
Shareholders first, staff second, customers third
Customers first, staff second, shareholders third
Staff first, customers second, shareholders third
Shareholders first, customers second, staff third
62
Which organization represents air traffic controllers in the United States?
National Mediation Board (NMB)
National Air Traffic Controllers Association (NATCA)
Federal Aviation Administration (FAA)
Association of Flight Attendants (AFA)
63
How does the seasonality of demand for airline travel affect labor unions' bargaining position?
It strengthens labor unions' bargaining position
It leads to airline strikes
It has no impact on labor unions' bargaining position.
It weakens labor unions' bargaining position.
64
What is the primary purpose of the Railway Labor Act (RLA)?
To ensure employee membership in unions
To provide complete independence of organization by both parties
To regulate the transportation of goods by rail
To prevent airline strikes
65
Which generation is characterized as being outspoken, expectation-driven, and self-motivated in the workplace?
Millennials
Silent Generation
Generation
Baby Boomers
