Originally Posted by
AccentOnTheFuture
If labor is killing the company, then the company pays too well. You can't have it both ways.
Market forces set prices. If competitors can get a lower price than AA, then there are cost discrepancies.
So, AA either pays people too much, has too many people, or a combination of these factors.
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It's not a pay issue. Not sure lately, but Southwest pays it's flight attendants more than the union shops. But Southwest flight attendants work to clean up the plane, and get it turned around pronto. Until recently, union shops didn't allow the attendants to clean up the plane.
Also, Southwest has the baggage handlers waive in the planes into the gates, in union shops it was (until recently) mechanics.
It's job protection, not pay, that makes things expensive. If revenue per employee is high, you can pay well and be competitive.