Labor Relations & Deregulation Essay Example | Topics and Well Written Essays - 250 words

Labor Relations & Deregulation - Essay Example Between 1978 and 1985, wages for airline mechanics fell significantly. Deregulation led to increase of computerization in the air industry. This was commonly used in cutting down transaction costs on the airline industry. It led to massive unemployment since computers replaced most of human labor (Kaps, 15). One of the major benefits of airline deregulations was the fact that employees who had lost their jobs during the deregulation phase, enjoyed greater unemployment benefits that were provided to them in the 1978 Act. This was included in order to appease the workers. On the other hand, airline companies improved benefits for their customers while increasing competition among airline service providers (Kaps, 18). Airline labor union bargaining powers became reduced after the deregulation. Before the deregulation, the union managed to advocate for wage inrease, efficient and friendly working rules and working conditions. After the deregulation, many workers faced improper and harsh working conditions and rules. These workers also faced irregular job losses. In conclusion, airline workers found themselves having fewer jobs and high demand on their productivity. The airline labor union role and powers were diminished and regulated. While the airline industry has become more productive and affordable to its consumers, laborers have lost jobs and wages and benefits reduced (Kaps,