082SIS85 EWHA GSIS IB Jaeyoung Alleich Shin

 Negotiations for the MCA-LFA  Magic Carpet Air - merged both MCA and RCA flight - entered into a marketing agreement with a major national carrier and became a “feeder” airline for that carrier  League of Flight Attendants - both MCA and RCA flight Attendants worried about what they perceived as the arbitrary way

AirlineStarting Wage/hr Days off /month Duty Rig* as Airline (% of time) A$ B$ C$ None D$ None E$ None F$ Magic Carpet$ None Regional Airline Industry Comparisons * Duty Rig is a pay calculation that is a certain percentage of the period of time which a flight attendant is on duty with the company. Duty time normally begins 45 minutes prior to first schedules trip departure time and ends 15 minutes after arrival time at the end of the day.

 the LFA negotiating committee devised an opening offer based on the average working conditions and wage rates for flight attendants  Negotiations for the second contract also went smoothly. In terms of contract provisions, the second contract was basically an extension of the first, with a modest pay increase and one additional paid holiday. The agreement was effective until August 31, 1997

 The LFA negotiating committee hoped to bring wages and work rules in line with the company’s financial performance and industry standards.  the LFA negotiating committee devised an opening offer based on the average working conditions and wage rates for flight attendants offered by other, similarly sized carriers.  They looked at wage, unemployment, and cost-of- living data from government sources such as the Monthly Labor Review.  The committee members knew the financial history of MCA and kept their proposals within financial reach of the company. They also used other employee groups(e.g., pilots, mechanics) within MCA as a guide- many of the LFA proposals were items that these others unions already had in their contracts.

 The negotiating committee indentified four strategies for achieving its objectives through bargaining. a. Keeping union members informed of negotiation progress b. Getting union members involved c. Convincing the company that the union’s demands were serious d. Settling an issue only with the unanimous consent of the negotiating committee.

 The Union’s Initial Position - They made goal the as 3 norms ; ‘change, new, clarification’ They proposed the same language for a revised grievance procedure as that printed in the pilot’s contract.  The Company’s Initial Position - The negotiators were surprised by the counterpart’s proposal using calculations and standards of industry. However, they kept saying “no” during the first session of the contract negotiation.

 Both parties were amicable and wanted to have good relationship  The company accepted all the proposal from the counterpart  The union counted their new wage in average standard  Negotiating with objective criteria

1. Frame each issue as a joint search for objective criteria. 2. Reason and be open to reason as to which standards are most appropriate and how they should be applied. 3. Never yield to pressure, only to principle The Union’s victory is from the attachment to the principle.

 The Union separated the bargaining subjects  they didn’t have to throw themselves in the game theory  The Union broke their demands into pieces and forced them step by step with principles.  They also used the mood of previous negotiation with pilots. - ‘Pilots won, We should stay in winning in some parts.’

Contract Provision contractUnion proposal Compensation Base Wage Wage after 5 years Duty rig Pay Daily guarantee Holiday Pay $13.00 $20.20 None 3.25 hrs None $15.45 $ hr pay / 2 hr duty(50%) 4.5 hrs 8 holidays at double-time rate Job security Successorship Protection of seniority rights in the event of a merger None Contract will be binding Arbitrator combines MCA seniority list with that of the other airline Working conditions Trip trading lead time Shoe allowance Winter coat Uniform maintenance 5 days None $16/month 24 hours $100/year Total cost $20/ month Changes in the Magic Carpet Air-League of Flight Attendants Contract

 using calculation for making right standard and information is strong bargaining power in negotiation.  With a little research, it’s more helpful to pursue the goal against high position party.  If someone stay only in high position, they would lose their openness to make the position keep high.  They would lose their alternatives in front of the right and proper reasoning. Information approach is the best in negotiation.  In conclusion, the position doesn’t matter in the bargaining and the Mood, Art are impossible to care for critical change. Only the science stimulates the reason to bargain, add to that information with amicable intend and strong but moderate principle make the success of each side in negotiation.