Crisis Management: Cathay Pacific Labor Dispute Analysis

Table of Contents

Executive Summary4

Introduction & Background4

Industry Overview5

History of Labor Relations6

Causes of the Industrial Action8

Attribution8

Attribution to Roster Practice8

Attribution to Remuneration Package10

Perceived Self-efficacy11

Perceived Self-efficacy with come across to Job Nature of Pilots11

Perceived Self-efficacy with Regard to the Power of AOA13

Analysis and Comment on the Strategies by the Pilots and the Management14

Strategies of the Pilots14

Managements Strategies15

Comments16

Recommendations18

Existing Scenario (Lose-Lose Scenario)18

Ideal Scenario18

Secondary but Practical Scenario18

Understand the Super-ordinate Goals18

Negotiation18

Seeking Third-party Intervention19

Reduce Stress for the Pilots19

Conclusion19

Executive Summary

A brief retrospect of the history and background of the air pedigree pains reveals that there atomic number 18 two key industrial factors that bear on this sideslip of a labor action: government involvement and comprise containment motivations. Due to its importance as a mechanism for spheric trade and economic development, the airline industry has a weapons-grade historic connection to government. Additionally, the majority of the technological developments in the industry grew from military applications. Finally, the underlying economics of the industry imply that fortunate airlines will keep their exist structure in line with industry leaders. Carriers that fail to compete on the basis of cost fail to compete in the industry.

Cathay Pacific had a commodious history of effectively avoiding impinge ons by offering relatively high compensation packages than other carriers in the region, but the recent grievous times have fallen on the airlines have strained management to delay pay increases and limit benefit extensions. These matters argon of great concern to the pilots who argon now convinced that they are grossly underpaid. Last year an angry group of pilots stubborn to take industrial actions against the Company.

The first organizational behavior system that can be used to explain the pilot strike at Cathay Pacific is the attribution theory.

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