A New Business Model

As major American corporations continue to expand across the globe, the strength of labor unions in America continues to dwindle in power. While corporations further the progression of capitalism, with the sole purpose of making a profit, a solution must be implemented in order to prevent the outsourcing of labors to other nations The result of outsourcing has contributed to the decline of consumer spending money in the united states, while making corporation’s wealthy for the moment. But what will happen when they no longer have consumer demands to sell their product to, with the increasing amount of unemployment in the United States, which is currently at 8.2%. I believe that American Airlines can serve as a business model for a solution to the separations between employer and employee, as they have begun to cooperate with their labor unions. During their previous economic set backs, American Airlines has collaborated with labor union leaders to reach an agreement to salary cuts in order to prevent the termination of employees. The benefits from this methodology include a clear explanation of financial revenue, with the included adjustment to cooperate presidents and vice president salaries in order to prevent the collapse of the company. With the support from labor unions American Airlines was successful in influencing the implementation of government assistance as well to maintain employment. With the localized expansion of this American bases corporation, they were successful in maintaining the wages of American’s during the challenging recession taking place. With the cooperation of more business models, seeking the best interest of their employees and consumers the idea of capitalism might have a fighting chance of surviving without sacrificing the best interest of people.