When the U.S.airline industry was regulated by the Civil Aeronautics Board (CAB). ,airline workers' unions:
A)did not benefit since the airlines were unprofitable and could not pay high wages.
B)negotiated higher-than-competitive fares from the airlines.
C)received lesser pay than what they received after deregulation.
D)were not organized and so did not have any bargaining power.

Question

Quizplus · Accepted Answer

When the U.S. airline industry was regulated by the Civil Aeronautics Board (CAB), airline workers' unions were able to negotiate higher-than-competitive fares from the airlines. This was because the CAB's regulation of fares allowed airlines to maintain higher prices, which in turn provided the airlines with the financial capacity to meet union demands for higher wages and benefits.