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Labor Laws

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Labor Laws and Unions
Mitch Atkinson
HRM/531
October 29, 2012
Dennis Cashman

Labor Laws and Unions
This paper topic is the organizational benefits of joining a union, the unionization process, union bargaining procedures, and the effects union bargaining has on an organization. American Airlines (AA) and the transportation workers union (TWU) are the selected organization and company. Included information, background information on American Airlines, along with history of TWU at AA, legal issues, and obstacles that AA has encountered with TWU.
AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation filed in November 2011 a voluntary petition for Chapter 11 reorganization. To achieve a cost and debt structure that was industry competitive for long-term viability. There are various unions associated with the airline industry, the one chosen to discuss in this paper is the transportation workers union. TWU has 114 autonomous locals representing more than 200,000 members in 22 states around the country.
As part of the Chapter 11 reorganization of AA the initial announcement that as many as 11,000 workers may be let go at the Fort Worth-based airline. The most recent announcement from AA is that approximately 4,400 mechanics, store clerks, and ground crew members of TWU will be part of a lay off. There are seven TWU workgroups representing approximately 24,000 employees at American Airlines.
As part of the strategic and collective bargaining between the Transportation Workers Union and American Airlines the number of job cuts decreased drastically by development of an early retirement option negotiated between the two groups. It is clear that the reorganization of American Airlines is not complete; more negotiations will occur between the two groups, the facts show that the airline has the upper hand over the workers

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