Abstract
Purpose: In the light of the South African Airways (SAA) (and Heathrow airport) strike in July 2005, an opportunity exists to evaluate the situation in order to address related problems in the future. The role of labour and specifically labour relations in the air travel industry highlights some important factors related to the industry. This paper aims to highlight the specific factors that will address possible reasons for poor workplace relations in SAA. Furthermore, a workable labour relations model for the organisation and other air travel organisations is proposed. In allowing a strike of the magnitude of the SAA strike of 2005 (e.g. a loss of income of R25 million per day), serious labour relations problems in the organisation are obvious. In order to prevent this action, an in-depth study of workplace relations is necessary to focus on the real problems and to adapt and make changes. Design/Methodology/Approach: This paper is an exploratory exercise based on literature that provides an overview of scholarship in the air travel industry through an analysis of trends and debates, telephonic interviews with role players in the industry and discussions with academics in the tourism industry and in labour relations. Findings: Taking into account that the air travel industry is technologically advanced, highly labour intensive, very sensitive towards external influences and very competitive, it is therefore important for every employer (including SAA) to design a labour relations system that is fit for the organisation. A suggested labour relations model for SAA is about the ability to build and sustain relationships characterised by shared goals, shared knowledge and mutual respect. Implications: The effects of strikes and other labour actions in the air travel industry have far reaching impacts on the air travel industry, the tourism industry, as well as the national economy. Originality/Value: This study highlights the importance of sound labour relations in the industry.
Highlights
Unique, the air travel industry, like many other industries, is in some instances very technologically advanced, and in others highly labour intensive
The employer is always looking for a successful recipe in a relationship that is never complete and in an environment that is sensitive towards external influences and very competitive (Kain & Webb, 2003:3)
The SAA strike of 2005 cost the airline about R200 million, an indication of high volumes of money lost in a short period
Summary
The air travel industry, like many other industries, is in some instances very technologically advanced, and in others highly labour intensive. Sound employer-employee relations or workplace relations is a vital component towards efficiency and profitability. The employer is always looking for a successful recipe in a relationship that is never complete and in an environment that is sensitive towards external influences and very competitive (Kain & Webb, 2003:3). Kim (2005:4) and the Centre for Responsive Politics (CRP) (2001:1) contend that air travel has been transformed from a service of the privileged to something more akin to riding trains and buses. Oum and Yu (1998:8) add that technological development, increasing globalisation of the world economy, and an increase in personal disposable income are among the factors which have increased demand for air travel worldwide Air travel used to be a luxurious way of travelling, but is currently mass transit. Gallagher (2005:3) confirms this fact, indicating that a high growth in demand for variety leads to new routes and planes every year. Oum and Yu (1998:8) add that technological development, increasing globalisation of the world economy, and an increase in personal disposable income are among the factors which have increased demand for air travel worldwide
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