Crisis Management: Cathay Pacific Labor Dispute Analysis

7119 words - 28 pages

Table of ContentsExecutive Summary4Introduction & Background4Industry Overview5History of Labor Relations6Causes of the Industrial Action8Attribution8Attribution to Roster Practice8Attribution to Remuneration Package10Perceived Self-efficacy11Perceived Self-efficacy with Regard to Job Nature of Pilots11Perceived Self-efficacy with Regard to the Power of AOA13Analysis and Comment on the Strategies by the Pilots and the Management14Strategies of the Pilots14Management's Strategies15Comments16Recommendations18Existing Scenario (Lose-Lose Scenario)18Ideal Scenario18Secondary but Practical Scenario18Understand the Super-ordinate Goals18Negotiation18Seeking Third-party Intervention19Reduce Stress for the Pilots19Conclusion19Executive SummaryA brief review of the history and background of the airline industry reveals that there are two key industrial factors that bear on this case of a labor action: government involvement and cost containment motivations. Due to its importance as a mechanism for global trade and economic development, the airline industry has a strong historic connection to government. Additionally, the majority of the technological developments in the industry grew from military applications. Finally, the underlying economics of the industry imply that successful airlines will keep their cost structure in line with industry leaders. Carriers that fail to compete on the basis of cost fail to compete in the industry.Cathay Pacific had a long history of effectively avoiding strikes by offering relatively higher compensation packages than other carriers in the region, but the recent hard times have fallen on the airlines have forced management to delay pay increases and limit benefit extensions. These matters are of great concern to the pilots who are now convinced that they are grossly underpaid. Last year an angry group of pilots decided to take industrial actions against the Company.The first organizational behavior theory that can be used to explain the pilot strike at Cathay Pacific is the attribution theory. Our review of the roster system, under which pilots select flight schedules, and the remuneration package indicates that the pilots and the management attribute the current systemic flaws to radically different causes. From the pilot's perspective, the current roster system is unpredictable and unfair. The management, on the other hand is convinced that the system is sufficient, and instead attribute the problems to breaches of contract on the part of the pilots and rampant absenteeism. An examination of the stressors and needs associated with this dispute help to explain its importance to those involved.Similarly, the Cathay pilots and the corporate management are at odd with respect to the remuneration controversy. Each group views only the relative size of the requested increase and subsequently evaluates that request against individual benchmarks. Pilots see the importance and responsibility of their positions as key to...

Find Another Essay On Crisis Management: Cathay Pacific Labor Dispute Analysis

Cathay Pacific Essay

682 words - 3 pages Cathay City. Till today Cathay Pacific holds his head up high when it comes to quality service and success in the airline industry (Ashok 2003 p110)Part 2SuccessCathay’s success has based on her wide-range of service all around the world especially in Asia, and modern management orientation and employees from over ten countries. In every country their service is considered as quality service as they always make the customer’s journey

Analysis for Airline Industry.

7701 words - 31 pages option contracts up to 24 months forward. While Cathay Pacific launched new Airbus A340 services to reduce the fuel cost per seat over Boeing 747.Figure 3. Fuel Cost Price changesSource : Singapore Airline annual report 2001b.Human ResourceThe provision of services, which meet certain quality standards, is one of the reasons why labor costs are so high in the airline industry. It is a labor-intensive activity, which requires staff contact with

Business Strategy of Virgin Atlantic Airlines

1627 words - 7 pages players; with many of them having worldwide operations. There are many large airline chains such as BA, Cathay Pacific, and Lufthansa. Furthermore, a large number of independent airlines especially in the European region provide acquisition opportunities to large chains. Merging in the airline industry would strengthen competition and result in loss of revenues. Intense competition threatens to wear away the group’s market share and reduce its

Thai airways

1303 words - 6 pages . It helps to increase the satisfaction of guest easily. For Cathay Pacific, the luxurious aircraft must be their unique point. Furthermore, they are the center of the airline industry to the China hub, which help to increase their potential customer. Thus, Thai airways nowadays need to come up with good strategy to complete in this industry. SWOT ANALYSIS: One of the main strength of Thai airways is the strong revenue growth. It also has

A Decline in Revenue at Quantas

1600 words - 7 pages virgin Australia with lower staff costs and greater productivity into the premium domestic market. A market it has enjoyed a monopoly for the last 10 years. Virgin has a strong foreign airline backer with deep pocket where as Qantas is struggling to attract investor’s interest and the last one is Qantas airlines are having a problem in management. To know more deeper why Qantas airlines are having a decline or crisis, SWOT analysis can be the other

Singapore Airlines

7843 words - 31 pages harder for SIA to differentiate itself and keep ahead of the pack. For example, SIA's pioneering of the spacebed had seen Cathay Pacific and British Airways implementing it in their cabins in no time. At the same time, operating costs in areas like labor and fuel has been consistently on the rise. Given rising standards of living, cost of labour will inevitably follow suit northwards in whatever country. Basically, it is getting harder to control

The Impact of Globalization on Qantas Airlines Marketing Strategy

1769 words - 7 pages from Rome to Hong Kong it was expected we’d fly on a Qantas jet but in fact we flew on a Cathay Pacific plane which had multiple flight numbers due to globalisation through the Oneworld alliance. Qantas’ situational analysis (SWOT) is the first step in the marketing process whereby the strengths, weaknesses, opportunities and threats of the airline are identified. The airline’s strengths include: Being part of the Oneworld alliance, having

Labour in Papua New Guinea

6411 words - 26 pages machinery's potentialfor dispute resolution and wage fixing. Rowley(1968) blamed the colonial background for notpreparing a local workforce for organised industrialrelations. Bailey (1970) and Patterson (1969)respectively discussed workers' lack of educationLabour Relations in Papua New Guinea: A historical review of the literature, 1920-2006 Benedict Y. ImbunLabour and Management in Development Journal, Volume 8© Asia Pacific Press 2008

Decisions in Paradise, Part 1

1326 words - 5 pages the risks that their organization will be facing based on the issues they have identified. This analysis is based on a structured approach to thinking through threats, followed by an evaluation of the probability and cost of events occurring. As such, it forms the basis for risk management and crisis prevention. Here the emphasis is on cost effectiveness. Risk management involves adapting the use of existing resources, contingency planning, and

Chinese Administration response to 2008 financial crisis

975 words - 4 pages : The Caseof China." ILO, 2009.6Liu, Ligang, "Impact of the Global Financial Crisis on China: Empirical Evidence andPolicy Implications," China & World Economy, Vol. 17, No. 6, (2009), 1-23.7McKissack, Adam and Xu, Jessica Y., "Chinese Macroeconomic Management Through theCrisis and Beyond," Asian-Pacific Economic Literature, Vol. 25, No. 1, (2011), 43-55.8Morrison, Wayne M., "China and the Global Financial Crisis: Implications for the

Applying Decision Making Techniques to Identify Solutions

993 words - 4 pages Applying Decision Making Techniques to Identify Solutions How will the South Pacific Logistics and Transportation Company establish a greater and profitable presence on the Island of Kava? Considering all the physical, environmental and socio-economical issues previously discussed, how can a decision be made that will provide the best solution for both the corporation, its stakeholders and the community in which they operate? There are

Similar Essays

Cathay Pacific Management Report

4697 words - 19 pages as one of the Leader airline in the world. For maintaining the leadership in the industry, continually company development and sustainable sale growth are the major objective of the company. In this management report, we would like to introduce the background of Cathay Pacific, analysis the Macro environment and the Micro environment. Also the customer retention programmes and their advertising strategy. Based on the analysis result, we were

Quality Management: Cathay Pacific Airways Essay

2467 words - 10 pages service quality.Define service quality responsibilities and give your personnel the authority to carry out these responsibilities. Make sure that senior management retains the responsibility for developing, measuring, auditing, and improving your service quality system.Various interviews and customer surveys conducted throughout the year, customers are invited to participate in the Cathay Pacific Voice of the Customer survey, conducted multiple

Cathay Pacific Airlines Essay

4333 words - 17 pages economic hardship was mainly the result of a financial crisis, which affected the Asia-Pacific region at that time. As a result of this crisis, air travel heavily declined, resulting in low passenger loads and yields. For Cathay Pacific, this translated into a decline of 12.9% in revenue. Additionally, Cathay Pacific also faced a series of problems with its labor department due to disagreements over negotiations and the handling of in-flight operations

Management Report

4697 words - 19 pages as one of the Leader airline in the world. For maintaining the leadership in the industry, continually company development and sustainable sale growth are the major objective of the company. In this management report, we would like to introduce the background of Cathay Pacific, analysis the Macro environment and the Micro environment. Also the customer retention programmes and their advertising strategy. Based on the analysis result, we were