The Influence on Resale Prices of Labor– Management Disputes in Aircraft Manufacturing .

Abstract

Aircraft are manufactured with unusual attention to quality control. The.product common in this industry limits the potential for Lordstown-style disgruntled employee sabotage documented in the auto industry. A loose bolt that rattles inside an automobile’s door frame is of a different magnitude than one that threatens the integrity of an aircraft. On top of the incentives to build quality in, aircraft are manufactured under multiple overlapping levels of quality control: by the manufacturer, by the buyer, and by the Federal Aviation Administration. This oversight extends from design to parts to assembly to maintenance. Both the market incentives and the extensive regulatory oversight limit the scope for labor disputes to affect quality.