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…

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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…

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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…

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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…

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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…

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ATD Today December 3, 2011

Statement by President James C. Little on Bankruptcy Filing by American and American Eagle We are very disappointed by today’s action by AMR. The Transport Workers Union will do everything possible to protect our members at both American Airlines and American Eagle. Work at both airlines will continue through the Chapter 11 reorganization. Our union…

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