SW F/A's Labour Dispute | Low Cost Regional?

[Guest Nova Zemlya]

SW F/A's Labour Dispute | "Low Cost" Regional? Horizon To Operate For Frontier

Southwest workers protest in pay dispute

Financial Times

By Caroline Daniel in ChicagoPublished: September 18 2003 19:53

The company myth of a contented workforce at Southwest Airlines was debunked on Thursday as flight attendants launched demonstrations at seven different airports across the US amid a contract dispute over wages.

Dozens of flight attendants at airports including Baltimore, Dallas and Chicago, handed out peanuts to customers, and waved signs saying, "working for free is just plane nuts", an ironic nod at Southwest's reputation for offering no food on its flights.

The demonstrations follow a decision last week by Southwest's management to call in a federal mediator - who was named on Thursday - after admitting the airline had reached an impasse after 16 months of talks with its flight attendants' union. The move marked the first time in its 32-year relationship with the union that it has turned to outside help.

Thom McDaniel, president of Transport Workers Union local 556, which represents 7,200 flight attendants, said the demonstrations were triggered by management's refusal to consider its proposals. "They said they would only sit down with us if we agreed to a media blackout," he said. The union refused.

Pressure from attendants has already forced Southwest to retreat from its initial plans to increase hours from 10.5 hours to 13 hours a day. The union says its members are paid about 20-30 per cent less than attendants at other airlines, even those at bankrupt carriers. Mr McDaniel also said they work about 23 hours a month, when aircraft are on the ground, for which they are unpaid.

The argument that Southwest is undermining its familial culture is a sensitive one for the airline that has long prided itself on treating its employees well. However, the battle also underlines how far corporate culture at airlines is becoming a central point of differentiation.

(Note: "...corporate culture at airlines is becoming a centeral point of differentiation," meaning all airlines are the same and can only be distiguished by how well they treat their employees and respect their contracts or their relationship with them- and of course, how much you are paid.)

At Song, the new low-cost carrier created by Delta, fostering a separate, innovative start-up culture is seen as critical to its efforts to succeed as a "carrier within a carrier".

Managing such issues will also be key for United Airlines, which this week outlined further details of its plans to create its own low-cost carrier. The airline, as yet unnamed, will fly out of Denver and start operating next February using a fleet of Airbus A320s. By the end of 2004, United expects to transfer 40 aircraft into the new entity, of which half will be based in Denver.

"LOW COST" SECTOR MOVING INTO REGIONAL OPERATION

Horizon Air will operate regional service for Frontier<

Horizon Air, the regional airline of Alaska Air Group of Seattle, has agreed to provide regional service for Frontier Airlines' JetExpress service for 12 years beginning Jan. 1.

Denver-based Frontier Airlines will pay Horizon a base margin and incentives to operate the JetExpress flights. Frontier will control scheduling and determine destinations.

http://seattle.bizjournals.com/seattle/stories/2003/09/15/daily25.html

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NZ

[Guest PortTack]

"even those at bankrupt carriers"

I think this part of the statement weakens the position as it can be spun to blame the high wage to the bankrupt status of the airline. Just my thought, but interesting post.

[Guest Nova Zemlya]

I think you're right about that- there is an express naivete on the part of the reporter in attempting to underline that bankrupt carriers should not be paying said amount, since they are bankrupt.

Instead, the traditional argument that holds down the wage at SW is debunked in favour of an increase, since the airline is growing and doing better, so why should F/A's be paid less than their counterparts at other airlines?

I underline the fact that productivity numbers a SW compared to regional F/A's is far lower- where the limit is now 14.5 hour days, 22-hour days if you are on reserve. Not only that, but they are obliged to 1/50 with no compensation for that fact, especially in light of delays and holdovers.

And SW is the model held up as: "Low Cost Model To Follow"

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NZ