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and consultatively and beyond the bargaining table. Finally, strategic decision making refers to the extent to which employees or their representatives participate in the governance and management of the firm. Clearly there are interactions between the different levels. For example, collective bargaining can shape workplace interactions, and the nature of workplace interactions can influence the tone and culture of collective bargaining. Firms differ in their HR/LR strategies, but these strategies also differ from industry to industry and from country to country due in part to differences in regulatory frameworks. These differences can have an important impact on how effective specific HR/LR strategies will be for individual firms. Which choices offer the best potential for achieving high levels of firm performance in the airline industry? We discuss research findings on this question later in this chapter. But first we provide an overview of distinctive features of LR in the airline industry, focusing first on the USA and then on other parts of the world, especially Europe, Scandinavia, Asia and the Middle East. 10.2 Labor Relations in the US Airline Industry The airline industry is one of the most highly unionized industries in the USA, with over 70% of eligible employees of the major airlines belonging to unions. Figure 10.1 shows the percentage of employees who are unionized at each of the major US airlines. Accordingly, the collective bargaining dimension plays a very central role in defining the employment relationships at most airlines. A noteworthy characteristic of the unionization of airlines is the presence of a large number of different unions in the industry and even within a given firm. See Table 10.1 for a summary of the unions that represent employees at major US airlines. Unlike in other industries, airlines typically bargain with multiple unions representing distinct occupations. Even when the same union represents a particular occupational group across several airlines, collective bargaining and contract negotiations occur at the firm level, not at an industry-wide level. This decentralized bargaining structure has pros and cons, but, in any case, shapes the nature of the collective bargaining process. Collective bargaining is also shaped by the regulatory framework - that is, the laws governing how unions and firms interact. A large part of the airline industry’s distinctiveness stems from its unique regulatory framework.



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