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Magic Carpet Airlines - Case Study Example

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Summary to case study on topic "Magic Carpet Airlines"
Three cultural issues operating in the situation included Magic Carpet Airline’s low wage rates for its flight attendants as compared to other airline companies. Another cultural issue in this situation was the lack of payment for overtime work. The third cultural issue in…
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Magic Carpet Airlines
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Download file "Magic Carpet Airlines" to see previous pages... They used the League of Flight Attendants to articulate their issues with the management. The other stakeholder in the case was Magic Carpet Airlines team that represented the company with whom these issues were being addressed (Kennedy, 2007).
Compensation was one of the major problems in this situation.
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The base wages for Magic Carpet Airline’s flight attendants were relatively low and the data that they collected from Monthly Labor Review helped them conclude that the base wage was not matching the cost of living that had gone up. The airline’s flight attendants observed that the company’s wage scheme was fixed and was contended for a five-year wage review (Guasco, 2007).
Job security was the other major issue in this situation. The flight attendants felt that they risked losing their seniority if the deal between Magic Carpet Airline and RCA went through. The company did not provide a clear way of reassuring its flight attendants that their contract was binding and this made them feel like they could lose their jobs anytime (Kennedy, 2007).
The third major problem in this situation was working conditions. The company assigned its flight attendants a prolonged trip trading lead-time of five days but they felt that it should be reduced to one day. The company provided $6 monthly for the maintenance of flight attendants’ uniforms but they felt that the about needed to be raised to $20 (Shell, 2006).
The fourth major problem in the negotiations was the disparity between the wages and wok rules, and Magic Carpet Airline’s financial performance. The league of flight attendants demanded for the harmonization of the company’s wages with its financial performance.
I would recommend that the League of Flight Attendants utilize quarterly meetings with the board of directors of the company in order to discuss their issues. This would provide a platform for them to air their grievances before they escalate. Secondly, I would ...Download file "Magic Carpet Airlines" to see next pagesRead More
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