Wage Inequality in the Airline Industry Essay Example | Topics and Well Written Essays - 1250 words

Wage Inequality in the Airline labor - Essay ExampleFor example, in the trucking industry, after deregulation unification stipend fell, whereas nonunion betroths did not change significantly. This contrasts to the situation in the flight path industry, where the wages of nonunion proletarians after deregulation subscribe eroded (Bratsberg et al, 2001). The entry of new non-union, low-wage companies into the market coerce existing companies to extract wage concessions from their employees, if they wanted to catch ones breath combative (Deller, 2002). In this way competition with other private airline companies and governmental airline suppliers, forced wages downward to contain costs increases.Still, because of high industry unionization (Bratsberg et al, 2001), the unions retained considerable dicker superpower, hence they were more effective in preserving high wages, and the union wage advantage increased during the old age after the deregulation.Literature review has no t identified one single method for determining wage inequality for the airline industry. Instead, various seek papers investigate into different aspects that explain wage levels and rate wage inequality in the airline industry by making comparisons surrounded by different worker/employee groups in the industry.One such paper distinguishes between wage levels of union, and nonun... One such paper distinguishes between wage levels of union, and nonunion workers, by assessing the effect of deregulation on union power (Bratsberg et al, 2001). Eventually, union power influences the wage levels of similar categories of workers who differ in their employment relations (union versus nonunion workers). According to the article, after deregulation, union wages have been less responsive to this change, whereas non-union wages have decreased significantly (Bratsberg et al, 2001) due to competitive pressure on costs. This has increased the union premium and has created greater wage inequality in the industry.another(prenominal) research project undertaken by Michael Reich (2003) assesses wage policies at the San Francisco International Airport - SFO - for eighty employers in aegis areas or who perform credentials functions. The paper distinguishes between different level service workers, defining security screeners, baggage handlers, fuel agents, customer service agents as the lowest paid non-managerial level airline service workers. The research ascertains wage inequality based on company of employment, whereas lower wages are concentrated among employees of airline service contractors, contrasted by (in-house) airline companies. Additionally, Reich (2003) determines a benchmark minimum wage level (similar to the relative scantness line) of $10.00 per hour and comments that the introduction of new policies that decrease wage inequality have created significant decline in jobs turnover. This has created the positive effect of reduced pay inequality on service levels , worker motivation and productivity (Reich, 2003).References1. Bratsberg, B. & Ragan J. (2001) Changes in the Union Wage Premium