Hence, as a result from their participation in the company, the employee will provide labour. The labour that they provide will ensure the stability of the company progression and the maximisation of competency with other airline services. In fact, the larger the number of employee that the company have, the more efficient the company will be. Shortage of employees will surely contribute to the degradation of the company image as there are insufficient staffs to hold and organise the company (O'Sullivan, Sheffrin, & Perez, 2010). Hence, if the problem persisted, the company will face bankruptcy and will eventually shut down or in another cases, they will terminate the particular branch that face the problem of staff shortage.
On the other hand, in the macro economic analysis about what the airline company had in connection to the economy is that, the company will provide employment on other count...
... middle of paper ...
...as reducing the number of workers Virgin Australia. Retrenchment for airlines is to achieve profitability by reducing the salaries of employees. When a reduction in the number of employees is done, then there would have been problems of unemployment. Unemployment stands for labor force which was includes employed and unemployed that who are willing to work but unable to find work (Mankiw, 2007, p. 154). For Virgin Airlines we can associate with technological unemployment. Labor replacement by machine due to technological progress which produces various automatic machine and computer had caused technological unemployment. This case will save wage cost because need not employ employee because the existence of technology that is sophisticated. Where self-check-in machine and register via online created for users of sign over the counter which was involving employees.
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