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American Airlines shares pension pain around

American Airlines executives will no longer be paid
special pensions in the event of bankruptcy after uproar from its unions.

Mechanics and ground workers at the world’s largest
airline threatened not to sign wage concessions after it emerged a special
trust has been established to pay pensions to 43 executives.

The airline was forced to back down because it needs
its unions to agree to cost savings to stop it falling into Chapter 11
bankruptcy protection.

Six of American’s most senior executives would also
have received special bonuses worth twice their salary if they stayed with the
airline until 2005.

The airline is cutting management numbers by 5% and
plans a further 5% cut in July.  

 

 

 

 

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