The premise of your editorial”The AMR Union Warning” (Dec. 1) about AMR’s bankruptcy filing—that workers and unions are unwilling to address changing circumstances—is simply false. In 2003, responding to industry challenges following 9/11, members of our union and other workers at American Airlines and American Eagle agreed to reduce our compensation by billions of dollars.…
Category: Bankruptcy
Skadden Tapped as Official Creditors’ Counsel in AMR Bankruptcy
Skadden’s appointment in the case—confirmed by a firm spokesman—came several hours after its lawyers and those from the other firms being considered for the coveted AMR role made their pitches to creditors’ committee representatives in a packed conference room at the Sheraton New York Hotel in midtown Manhattan. The other firms vying for the assignment…
AA Bankruptcy Q&A from the TWU ATD
1. What about My Pension? As a safeguard against the risk that a defined benefit pension plan may contain insufficient funds to pay the promised benefits to workers upon retirement, a federal statute, ERISA, imposes minimum funding standards on plan sponsors. ERISA also established a pension insurance program that guarantees that retirees receive at least…
TWU has earned a seat on the Creditors Committee
Dear Brothers and Sisters, Today, The U.S. Bankruptcy Trustee made the right call as we have earned a seat on the creditors’ committee as the company goes through a Chapter 11 restructuring. Thirty thousand TWU members are critical to the current and future operations of American Airlines and American Eagle. AMR, the parent company of…
How four other airlines have fared in and emerged from bankruptcy
United Airlines Filed for bankruptcy: Dec. 9, 2002 Length of time in bankruptcy: 38 months Capacity changes: 20 percent fewer airplanes; trimmed capacity by 8 percent Job cuts: 30 percent fewer employees, about 58,000 Wage/benefit cuts: Terminated defined-benefit pensions; average pay for pilots, mechanics and ground workers dropped about 35 percent; flight attendants’ average pay…
Bankruptcy Q&A: Pension Information
The Pension Benefit Guarantee Corp. (PBGC) website is the best source for answers on retirement. You may want to look at that sites Q and A section. As of right now American has made no changes to the retirement plan in the TWU/AA agreement. It is expected that while in bankruptcy they will seek relief from the…
Bankruptcy Q&A: System Protection
“Whats happen to system protection and the ability to “bump” in the the event of a layoff. In other words if they “throw out the contract” are all our protections gone? And just what can the company change to the contract, ie: seniority protections, grievance rights, etc. Thanks“ Getting accurate answers to some of the questions being posed is…
The Public and Congress should be Up in Arms over the Bankruptcy Filing at the airline called “American”
By James C. Little AMR, parent of American Airlines and American Eagle, filed for bankruptcy last week even though the company is sitting on $4.1 billion in cash and is able to pay its bills. AMR’s ads in USA Today and the poor excuse for news coverage on network television last Tuesday would lead an…
United Airlines Retirees Shorted On Pensions Due To Agency Errors: Watch Dog
WASHINGTON — A watchdog report says the agency that insures pensions for millions of U.S. workers made serious errors in valuing pension plans for United Airlines employees and as a result some retirees may have received less than they were due. The report issued Wednesday by an assistant inspector general of the Pension Benefit Guaranty…
Do you have a question that has not been answered on the website?
In case you do, we have provided your questions to the international. Those that we can answer locally have been. Please take some time and read through the http://aa.twu.org site, the PCGB site and if you still have questions, submit them HERE. We understand your need for answers, we feel the same as you. ,…