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…

Read more →

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…

Read more →

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…

Read more →

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…

Read more →

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…

Read more →