Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
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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.
I thought the retiree medical WAS eliminated for salaried people in 2003 during the bankruptcy threats -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.
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?
Sacrifice 600 Management retirement medical to setup the screwing of 20,000+ TWU Members = Priceless
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.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.
Sacrifice 600 Management retirement medical to setup the screwing of 20,000+ TWU Members = Priceless