Magic Carpet Airlines Case Study Essay

1203 Words May 5th, 2014 5 Pages
Case Study – Magic Carpet Airlines
Week 4
September 22, 2013

1. What did the union do to prepare for negotiations? What additional sources of information might it have used? What were the union's primary objectives? The union began preparing by doing research to find out what other similar airline carriers were supplying for their flight attendants (i.e. average working conditions, benefits, and wage rates). They used government sources to compare wage, unemployment, and cost-of-living data. LFA already knew the financial history of the company so they decided to propose ideas that were within range of their situation. After doing some research, LFA decided to send out a survey to find out what
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This caused many airlines to cut their labor costs where they could. That is why MCA asked for concessions on nearly everything.
5. What tactics did management use that they had not attempted to use previously? In the beginning, MCA didn’t care to negotiate at all. They wanted the contract to stay the same without any changes. They did not care what other similar companies were paying their employees or the benefits that they were getting. MCA went into negotiations much like a two year old who doesn’t want to act right. However, as the negotiations went on, they decided to grow up and try to be reasonable. They began to compromise (i.e. give a little and get a little). They used intimidation, power, and basically tried to trick the Union into signing something that they did not agree on.
6. What role did ethics play in this case? The Union tried to use the ethic card several times in the negotiations but MCA was only worried about the money that they were going to lose in the process. Eventually, MCA realized that the Union was not going to give up and there were certain issues that they would not let go, such as wages, duty rig pay, and job security.
7. What strategies did the mediator use, and why did he quit? The mediator, Mr. Crenshaw, tried to use the stance of, it wasn’t their idea but it was mine. He tried to go in and say that he came up with a brilliant plan to try to get

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