The role of labour unions in airline privatization : a comparative case study of Air India and Thai Airways | |
| Author | Tréguer, Annaïg |
| Call Number | AIT RSPR no. SM-01-55 |
| Subject(s) | Airlines--Labor unions--India Airlines--Labor unions--Thailand |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-01-55 |
| Abstract | Nowadays globalization cannot be absent from any economic decision either in developed or developing countries. The new trend is to be integrated, nearly at any cost (since international financial institutions are here to back up those major changes) and the Asian continent is no exception. How to better express this globalization trend than taking the example of the airlines industry which symbolizes the increasing necessity for goods as well as people to move as fast as possible through a convenient and safe means of transportation. The purpose of this Research will, then, be to analyze the context of such an economic decision as the airline privatization, and especially analyze whether the Industrial Relations System still has a meaning in this context. More precisely the labour unions and whether their opinion is taken into consideration or not, will be a proof of the situation. In India after the nationalizations implemented by Nehru in the 1950s, there is a change in the economic trend in order to adapt to the new global rules. Air India is one of the State Owned Enterprises (SOEs) who has been selected in the national privatization plan. After many years of an absence of profits or even deficits, it is high time for the Indian government to find new investors, if necessary from abroad, in order to finance the modernization of Air India fleet which is critical to tum around the financial situation of the national carrier and as a result improve its competitiveness. Concerning Thailand, the first step of privatization of Thai Airways International occurred in 1992 when 7% was sold as Public Offering. However, since the Asian crisis of July 1997, and the loans Thailand had to be granted by international financial institutions, time has come to pay back the money lent. The status of Thai Airways will not suddenly move from a State Owned Enterprise to a private company since the disinvestment will concern only 30% of the national carrier, contrary to the Indian case. After having collected the data, through in-depth interviews with labour unions as well as managers involved in the privatization process, the role of labour unions appeared to be rather insignificant compared to the first expectations. Since the privatization is only at its beginning, the decision of disinvestment was taken without the consent either from the labour unions or even the management of the national carriers. However the safeguards demanded by the labour unions are numerous and the fears are high about the negative impact of the privatization on working conditions and benefits of the employees. The social dialogue is the solution to reach a compromise between the interest of each party of the industrial relations system. |
| Year | 2001 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-01-55 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sununta Siengthai; |
| Examination Committee(s) | Tang, John C.S. ;Broustail, Frarn;ois Joel; |
| Scholarship Donor(s) | European Union Scholarship (PTS Program) ; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001 |