ABSTRACT
Labor relations in the airlines are regulated under a special federal law applicable only to them and to the railroads—the Railway Labor Act. The major destabilizing element that has affected collective bargaining during deregulation has been intense competition from numerous new-entrant carriers that immediately began to bite into the market share of the major airlines. Labor has always been an important part of the cost structure of the airlines, representing on average over one-third of total operating expenses and over two-thirds of "controllable" costs. Airline analysts agree that to guarantee profitability and survival, an airline needs access to several vital components. The jet age brought speed, luxury, comfort, and a host of other advantages to the airline industry—and it also brought with it literally hundreds of new problems for airline employees. The fledgling airlines benefited from minimal employee seniority, which produced low unit wage costs, because most union pay scales are based on longevity of service.
