ecently announced a new short-haul airline named Friendship Express. The new company devoted to shorter routes will pay its workers 30% less than Southwest Airlines, phasing them in to reach current Southwest wages over eight years. This move is an effort by the company to be more competitive with low-cost Southwest Airlines. Unions have informed members such a move will create over 10,000 new jobs while also preventing lay-offs at United. Thus far unions have not rejected the proposal.
Many unions, however, are opposed to two-tier wage systems. American Airlines has also been negotiating with unions to implement a two-tier wage system. A regressive new-hire pay scale has been negotiated at American Ai
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