Category: Bankruptcy

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…

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. ,…

Court Update 12/1/11 – AA Bankruptcy

The Debtors scheduled a hearing on December 13, 2011 at 2:00 PM on the following motions: Interim Order (I) Authorizing Motion of Debtors for Entry of Order Pursuant to 11 U.S.C. §§ 105(a) and 546(c) Establishing and Implementing Exclusive and Global Procedures for Treatment of Reclamation Claims Interim Motion of Debtors for Entry of Order…

Letter from Sam Cirri, President TWU local 514, 12-1-2011

Dear Brothers and Sisters, Tuesday we learned that AMR filed for Chapter 11 Bankruptcy. Now everyone has a thousand questions, and understandably so. To help get answers to your questions we have modified our website, www.twu514.org, to allow you to submit your questions directly to our International Legal Staff. We are now going down a…