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British Airway Dispute Theory And Practice

2043 words - 8 pages

BA Dispute Theory and Practice

1. Introduction

Since the 1980s the situation in the civil aviation industry has changed dramatically, and although the government still retains some form of in-direct control over the aviation sector and the ‘former’ national airlines in specific, issues related to economization and efficiency of the business enterprise take primacy in dictating strategic and operational decisions of the airline operators. This shift in the approach to the regulation of the aviation sector around the globe has also greatly influenced issues related to workforce organization in this industry, especially in the Western world.

In this report, the shift in the approach to employee relations will be discussed based on the case of one of world’s biggest airlines – British Airways. A concise analysis will be presented on the implications of the changing political, economic, industrial, legislative, social and technical conditions had on employee relations and the organization. Further indications of the relationship between employee and organization will be emphasized from the perspective of management theory.

2.1. Political and legal factors

The opening of new markets within the EU exposed many national carriers to strong competition. This trend has been furthered by the continuous liberalization of the global aviation industry and specifically the recent OpenSkies agreement between EU and the US which allows the national carriers to arrange the Atlantic flights from the airports that are not airlines’ ports of origin. (BA Annual Report 2009, 2010, BBC 2009).

The recently proposed raised taxation will put a huge disadvantage on the British civil aviation industry (McGhie, 2010).

2.2 Economic factors

From the economic perspective there have been few main points of pressure on the strategy of British Airways. The 2008 global recession, the worst economic downturn since 1930s, continuous high unemployment rates, along with the fluctuation of the British Pound continue to negatively influence all businesses. Amidst the crisis, trade unions demanded greater government intervention to support employment levels. Yet, in order to preserve employment levels, collective agreements between UK social partners at organizational level set new standards of reduced working time (Eiroonline, 2010).

2.3 Social factors

One of the main factors influencing the business of British Airway from the perspective of the society are the attitudes to flying related to the threats of terrorism (after the incidence of September 11). Still many consumers are concern about the safety on board of aircrafts, especially on the long haul flights (The Times, 2010).

At the same time, the fact that the UK population is aging could suggest that the demand for good, comfortable services for premium prices will be rising (National Office of Statistics 2010).

2.4. Technological factors

With the technological advancement in Internet...

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