American Airlines execs explain how they'll slash employee benefits, pensions, and contracts
Skift Take
The new rules don't simply cut costs. The retirement betrayals, slashes to health care, and layoffs give employees a reason to actively hate their employer and passengers an excellent reason to avoid the troubled airline.
American Airlines began laying out a timeline for changing work rules and benefits for union workers as it started to implement new contracts as part of its bankruptcy restructuring.
For flight attendants, mechanics, ground crew and other nonpilot union workers, American said it will freeze retirement plans with no new benefits accruing after Oct. 31. After that, the company will begin contributing a dollar-for-dollar match up to 5.5 percent into a 401(k) plan for employees.
"In addition to these benefit changes, the company will now move forward with the implementation of other restructuring changes that vary by department or employee group," said Denise Lynn, the company's senior vice president of people, in a letter sent to employees. "There will be changes in our airports, maintenance and cargo operations, among others, as the process moves forward -- and you should exp
