Bankruptcy judge rules against American Airlines' bid to quickly end retiree benefits

Discussion in 'American Airlines | AAdvantage' started by Newscience, Apr 18, 2014.  |  Print Topic

  1. Newscience

    Newscience Gold Member

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  2. LETTERBOY
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    Not going as smoothly as Dougie thought, is it? :D:D:D
     
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  3. Pizzaman
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  4. Newscience

    Newscience Gold Member

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  5. Pizzaman
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    As I noted when I blogged this earlier today, how exactly do you convince your existing employees that you're bargaining in good faith while you're busy screwing the previous batches of employees?
     
  6. LETTERBOY
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    Dougie has somehow convinced himself that he can do it.
     
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  7. ballardFlyer

    ballardFlyer Gold Member

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    They would be joining countless other even non bankrupt public corps in trying to end retiree health subsidy and having the retiree pay the full premium. Those premiums are still better than the general market due to group plan cost pooling. And paying for life coverage for the retired employees really must be sky high due to their age profile. It's not even mildly surprising and every airline will do this if they haven't already.

    Personally Id rather just see Medicare get better so that all retirees can be safe and someone's health care quality in old age isn't based on the luck of what company they worked for during their last 5 working years.

    This is just the AA finance team making pretty general biz decisions that many industries make every day. Do I like it - no. But it's nothing special.
     
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  8. Pizzaman
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    I guess, except it would seem these benefits were collectively bargained for. If the language said they could terminate the plan or adjust contributions at their discretion, I have no issue. But that doesn't seem to be the case here. I'm pretty anti-union. But, I'm also pretty in favor of giving your employees what you said you would.
     
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  9. zphelj

    zphelj Gold Member

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    It struck me as a fair ruling though i'm not fit to judge really. I agree with ballardFlyer though and not necessarily pin this on Dougie at all; it is something we're going to continue to see more and more of and it has nothing to do with airlines.
     
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