Only a small gap separates the pilots' positions and the airline - their differences could be solved through rational and reasoned negotiation. American has offered pilots, who already earn an average of $120,000 per year, a generous package consisting of stock options and a 10-percent wage hike over 4 years. But the pilots are more worried about losing some of their jobs to lower-paid commuter airplane pilots. The imminent strike is not a result of these policy differences - the lack of progress in negotiations has been largely due to hostilities between the pilots and American's top administrators. The federal mediation board's labor dispute expertise could relieve tensions and be a catalyst for compromise.
American Airlines, as one of the nation's largest carriers, controls a large number of passenger air routes. In some cities, American is the only option for the majority of flights. Shutting the carrier down would wreak havoc on the economy. Business travelers would be impeded, hotels and airport businesses would lose millions of dollars and vacation plans would be hindered - especially on one of the busiest travel weekends of the year.
Although Clinton's decision was appropriate to this situation, he should invoke the Railroad Labor Act in only the most extreme circumstances. Labor's ability to strike provides leveraging power that has resulted in significant advances in pay, benefits and working conditions. Taking this trump card from the unions would leave employers with little incentive to bargain in good faith.
Some strikes, like at American Airlines, affect the national infrastructure and the performance of the economy. For instance, automotive strikes often lead to thousands of layoffs in auxiliary industries. Strikes in railways, trucking and mining could bring the economy to its knees. Clinton must avoid using the Railway Act in most of these cases. Sometimes economic repercussions that result from organized strikes are not reason enough to halt a strike - the president must weigh whether the resulting deterioration in labor morale and employer relations will be more damaging than any adverse short-term consequences.
At times, when the issue gap between unions and employers is large, a strike is the only way to invoke compromise. This is not true of the threatened American Airlines pilot strike because of the hostility in negotiations and the relative wealth of both parties. These circumstances, coupled with potential devastation to the economy, were good reason to use the Railway Labor Act for the first time in 31 years. Nevertheless, American Airlines' situation is rare and the president must continue to use the act sparingly. Preserving labor unions' power is vital to retaining high worker productivity and an increasing standard of living in America.