Is it Unethical to not Compensate Employees Despite Soaring Profits?

British Airways crew walk out over “poverty” pay
With low costs and high profits, the airline has few excuses for not paying staff better,
The aviation industry has long been criticized for poor wages for its employees. While the industry is perhaps one of the fastest mode of transportation, many workers enjoy other perks of their job such as free or discounted travels along with the ability to explore the world. The aviation industry is highly regulated  and  the success of many airlines depends on their ability to sustain a competitive advantage in the market. With the expansion of emerging markets and globalization many airlines are competing to gain strong market share. They have invested heavily into their product and also identify ways to reduce cost. With the low fuel price, many airlines are becoming profitable in many markets. Despite such a profit, many airlines employees are not getting a feel of that profitable gains in their pocket. As a result many go on strike or boycott their duties to show their frustration. The question that must be asked is if it is unethical for an airline to not share profitable gains with their employees? Or is it unethical for employees to boycott their duties leaving thousands of passengers stranded around the globe over poor wages?
Given my experience in the airline industry, I think airlines must ensure they take care of their most important asset, which is their employees. With that being said, airlines must ensure employees are provided with the best medical packages, ensure they are properly compensated and also there is room for promotion. Failure to do so can tremendously affect an airline’s operations and profitability should a strike take place. In this case, we can analyze British Airways stance on poor wages for their employees. The increasing cost of living has led to more employees asking for pay increase. Despite British strong profits from its primary operations and other subsidiaries there is still a pay scale gap. While I do think it is unethical to reap the benefits of the worked sowed by employees and not reward them, I do understand the urgency of other financial obligations the company must take. I do however believe that their 2.6 billion made last year in revenue should be properly proportioned and distributed amongst its employees. The effects of an employee’s strike hinders the trust between British Airways and its customers and I do think it is unethical that passengers must suffer. Within the United States, many major carriers were profitable for 2016. They have invested in their operations and most importantly their employees. Delta for example paid a whopping 1.1 billion dollars in employee profit sharing. The company like most major U.S carriers understands the importance of the wellness of their employees whether from a work related level aspect or that of a social and financial stance. While British Airways sees this as minimal impact on their operations, it can be much greater should there be a major strike of their employees.
Sources:
G, G. (2017, January 09). British Airways crew walk out over. Retrieved March 24, 2017, from http://www.economist.com/blogs/gulliver/2017/01/air-strike?zid=303&ah=27090cf03414b8c5065d64ed0dad813d
Farber, Madeline. "Delta Air Lines Employees Just Got $1.1 Billion In Profit Sharing". Fortune.com. N.p., 2017. Web. 27 Mar. 2017.


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