AMR Dropping Retiree Medical Option

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I am sure that this is a major point of dispute for all union negotiations. It is unfortunate for any of us who look retire, with the addtional burden of loosing medical coverage.
 
The article discusses AA dropping retiree medical for non-union retirees, like executives, managers and support staff. AA hasn't done anything that affects any union member. That said, AA is throwing away money by not forcing retirees to Medicare when they turn 65.
 
The article discusses AA dropping retiree medical for non-union retirees, like executives, managers and support staff. AA hasn't done anything that affects any union member. That said, AA is throwing away money by not forcing retirees to Medicare when they turn 65.


This is true, but I'm sure it is being used as a negotiating point. Also, the retiree (RSM) coverage pays better coverage than Medicare. Without it, you will pay a lot more.
 
This is true, but I'm sure it is being used as a negotiating point. Also, the retire coverage was for "gaps" in Medicare. Without it, you will pay a lot more.
I thought the retiree medical WAS eliminated for salaried people in 2003 during the bankruptcy threats -
(With the understanding, of course, that this doesn't apply to the important scum at Centrepork).

Is the Tulsa World just now noticing?
 
Once you are eligible for Medicare this insurance becomes irrelevant. One of my friends retired and said it has paid a thing. It wont pay until after Medicare has been billed and to date Medicare has picked up the bill for everything. It sounds nice but unless you are retiring early its a wasted expense.
 
My understanding was also that management had lost this medical coverage in 2003. Either it was returned and now removed again or this is another ruse to prepare us for a TWU concession.

Reported first in the Tulsa World indicates a targeted readership.
 
The article discusses AA dropping retiree medical for non-union retirees, like executives, managers and support staff. AA hasn't done anything that affects any union member. That said, AA is throwing away money by not forcing retirees to Medicare when they turn 65.
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Clearly you haven't worked for AA very long. You will learn the hard way that AA initiates all there Union concessions with their management and clerical prior to pushing it on to the Union folks i.e. the double time and a half for HW. In the case of forcing retirees into Medicare, it is not as cut and dry as you think. Many management folks retired early with a promise of continued medical. Everyone knew that AA Medical was supposed to end at age 65, that is not the problem. American Airlines decided to end the coverage on 1/1/10 and force the employees that were not yet 65 to pay for coverage that they had earlier promised to give them for free in exchange for leaving early. The worst part of the AA action is that when the employee reaches 65 his or her spouse is also cut off for the purposes of medical regardless of whether he or she has a life threatening illness. Some of my friends have spouses 8 years younger that they are and all they are now entitled to is a COBRA for 3 years at an exorbitant rate. How would this set with you if it were your wife?
 
Retiree medical for management was eliminated in the 2003 restructuring agreements for those that were still working. I was one of those, and my prefunding contributions were returned to me.

Those that were already retired were still covered. Now they aren't....and if they have any money left in their prefunding accounts, it will be returned.
 
Sacrifice 600 Management retirement medical to setup the screwing of 20,000+ TWU Members = Priceless
 
Sacrifice 600 Management retirement medical to setup the screwing of 20,000+ TWU Members = Priceless

Throw APFA onto that list. Glading had a meeting today with the National Mediation Board because the company negotiators are stalling by showing up to the negotiating table unprepared, with zero interest, and zero proposals.

From Laura:............"Accordingly, I have contacted the National Mediation Board and will be meeting with them Tuesday afternoon in Washington to discuss the current state of our talks. Though a number of dates have been set for further bargaining through the end of the year, APFA questions the value of continued meetings with a management intent on sitting idly by while our members continue to give every day. Section 6 bargaining under the Railway Labor Act is designed to pressure both sides to actively participate. We have done more than our share and it is time for American to do likewise."

I wonder how the meeting went.
 
Retiree medical for management was eliminated in the 2003 restructuring agreements for those that were still working. I was one of those, and my prefunding contributions were returned to me.

Those that were already retired were still covered. Now they aren't....and if they have any money left in their prefunding accounts, it will be returned.
So AA breaks another promise. Last year they cancelled the "good for life" passes and this year they decide to take away Retiree health benifits from people who already retired. While it may only affect a small number of people(such as those who retired early or have bills that Medicare wont pay) it's still not the right thing to do and we should keep this in mind when we are told that we should continue to make sacrifices to insure the next big broken promise-the pension.

I like how AA cites "79 percent of U.S. employers do not offer health coverage to retirees eligible for Medicare", well 79% probably dont require their workers to work shifts weekends and Holidays either and wont this cancellation affect those who arent elible for Medicare as well? When is AA going to realize that they make huge demands and they should expect to pay? The average age is 46 and you dont see too many kids that express an interest in working for the airlines anymore. The glamour is gone.
 
So AA breaks another promise. Last year they cancelled the "good for life" passes and this year they decide to take away Retiree health benifits from people who already retired. While it may only affect a small number of people(such as those who retired early or have bills that Medicare wont pay) it's still not the right thing to do and we should keep this in mind when we are told that we should continue to make sacrifices to insure the next big broken promise-the pension.

I like how AA cites "79 percent of U.S. employers do not offer health coverage to retirees eligible for Medicare", well 79% probably dont require their workers to work shifts weekends and Holidays either and wont this cancellation affect those who arent elible for Medicare as well? When is AA going to realize that they make huge demands and they should expect to pay? The average age is 46 and you dont see too many kids that express an interest in working for the airlines anymore. The glamour is gone.

I continue to do everything in my power to discourage those who might consider a position with American or any other airline. Airlines may well be a temporary place to land but as far as a career is concerned, no.
 
Sacrifice 600 Management retirement medical to setup the screwing of 20,000+ TWU Members = Priceless

While I'm sure TWU "represented" workers (and FAs & pilots) will eventually be on the receiving end of management's ideas re: saving money, I do find it amusing the very people who thought they were immune to these corporate shenanigans are being thrown under the bus in a rather unceremonious manner after having engineered similar hosings aimed at the union folk over the years. Karma seems to be the metaphysical equivalent of Newton's Third Law.

That, sir, is really what's priceless.

As is normally the case, there will be some for whom this may be the straw which broke the camel's back, most of which will be the support staff who weren't high earners during their careers. I certainly hope there are a minimal number of those folks and those that did get caught up in this should be reminded there is help out there.
 
Glad to hear that the only concern is the gap between early retirement and Medicare.

I'm not surprised by this news. About fives years ago companies started really putting the brakes on generous retirements benefits like pensions and health care. With the recession cost-cutting that trend is clearly intensifying. It doesn't work for AMR to pay these benefits when they compete with B6 and VX who don't, and have to price their product the same in order to win business.
 
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