Transportation

Hardworking IAM members like Patti Rodriguez (right) and Roy Stevens (left) are two reasons why Southwest Airlines is the nation's most successful carrier.

On Course: IAM and Southwest Airlines
Southwest Airlines has a reputation for doing things differently. When other airlines cut service and furloughed tens of thousands in the wake of the terrorist attacks, Southwest kept every employee on the payroll and ended up hiring to accommodate the increased business that came its way.

While financial losses ballooned at every major U.S. carrier, Dallas-based Southwest continued to turn profits. The airline recently declared its 106th consecutive quarterly dividend and managed to turn a profit while the eight largest U.S. carriers posted net losses of nearly $8 billion in 2001.

When airline executives banded together to lobby congress to get legislation restricting their employees' collective bargaining rights, Southwest refused to join the effort.

So what is Southwest doing so differently?

"For one thing, they treat their employees with a level of respect that is uncommon in this industry," said IAM Transportation Vice President Robert Roach Jr.

In recent negotiations between Southwest and the IAM on behalf of 10,000 Customer Service and Reservation Agents, both sides agreed on a new contract only six weeks after the old agreement became amendable.

"That is practically unheard of in this industry," said William O'Driscoll, District 142 President, representing IAM members at Southwest. "The agreement shows what can be accomplished when a well-managed company and dedicated employees work together."

Executives at other airlines have long admired Southwest's success without being able to imitate it.

"They understand the technology, cost structures and route planning," writes Wayne Cascio, a management professor at the University of Denver. "They have the same equipment, locations and marketing savvy. Yet over and over, whether large or small, Southwest's competitors have been unable to replicate Southwest's success."

"The difference is trust," says O'Driscoll. "We have built a working relationship at Southwest that is the envy of the industry. But it's no secret. Ask any employee, union or management and they will tell you the same thing: trust is the key."

Going for Broke: Major Airlines Struggle to Survive
Union and non-union airline employees throughout the United States are taking unprecedented steps to keep themselves and their carriers from financial oblivion.

With oil prices topping $35 a gallon and the prospect of war further inhibiting passenger travel, many industry experts do not see a financial rebound for airlines until 2005.

It was no surprise when United Airlines and US Airways, with combined losses of nearly five billion last year, sought protection from creditors in Chapter 11 bankruptcy.

"The airlines are reeling from the combined effect of 9/11 and a travel recession that won't quit," said IAM Transportation Vice President Robert Roach Jr. "But according to some airline analysts, the only thing keeping airlines in the red is their employees' pay checks."

"It is highly irresponsible to distort the problems facing this industry," said Roach. "Unless the airlines' revenue problems are addressed with some degree of common sense, any pickup in capacity will surely be squandered on mindless fare wars and cutthroat competition."

"Airline employees should be recognized for their sacrifices rather than criticized for protecting their jobs and the industry they helped create," said Roach.