Employees of American Airlines worked for years on the assumption that they would receive a pension. But that legal obligation may not survive America Airlines’ bankruptcy.
Companies and cities see this as a way out. They can drive a hard bargain with unions. Who do you think unions worry about most? Existing workers or retired workers?
The unions may fight. But how can they win? Once a firm declares bankruptcy, it can tell workers, “Accept our offer or else find a new career.”
The parent of American Airlines wants to eliminate about 13,000 jobs — 15 percent of its workforce — as the nation’s third-biggest airline remakes itself under bankruptcy protection.
The company proposes to end its traditional pension plans, a move strongly opposed by the airline’s unions and the U.S. pension-insurance agency, and to stop paying for retiree health benefits.
Read More at the Tea Party Economist By Gary North, Tea Party Economist
Related posts:
- Credit Limit Reached: U.S. Treasury Department Suspends Pension Fund Payments As the US government reaches yet another historic debt ceiling,…
- Media Largely Misses Yemeni Passenger Story There was more to the story of the passenger who…
Get Informed! Read More About this topic::
- Democratic Attorneys General Snag $1.1 Billion Slush Fund Tweet Five big banks have agreed to give twenty-three Democratic attorneys general...
- Surprise! Obamacare Much More Expensive Than Previously Estimated Cost estimates for a key part of President Barack Obama’s...
- Surprise! Young Americans Most Likely to Support Traditional Values Susan Stamper Brown, FloydReports.com Appearances can be deceptive. In this...
- Keep Our Constitution Safe The jury is out. While roughly half of the country...
- Concealed Carry Would Have Kept Norway Safe Michael Reagan, FloydReports.com How long would the Norway gunman have...
