Problem
1. "Every union knows that an airline is more vulnerable to strikes than most other businesses. Airlines have high fixed costs regardless of whether their planes are flying. They can neither stockpile seats during a strike nor sell from inventory afterward. Strike losses cannot be recovered. The strong impulse is to avoid a strike, even if that means settling on an unsatisfactory basis." [From an airline newsletter]
a. Do you think the airline industry is particularly vulnerable to union demands? Why or why not?
b. If the airlines were vulnerable, who would pay for an "unsatisfactory" labor settlement in the short run? In the long run? Explain.
2. How are public employee unions different from other unions? How are they similar? Would you expect them to behave differently? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.