AMR Dropping Retiree Medical Option

[nbmcg01]

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.

So basically screw the loyal worker who has worked for the company for many years. I know, when the executives get to keep their "generous" retirement benefits it will be because AA needs to "retain" all of that talent. Seriously...

 

[JFK Fleet Service]

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.

They put the brakes on retirement bennies for the peons, senior level types still have bankruptcy proof "pension and health care benefits".

 

[The Goose]

So basically screw the loyal worker who has worked for the company for many years. I know, when the executives get to keep their "generous" retirement benefits it will be because AA needs to "retain" all of that talent. Seriously...

I'm ready to show them the true "value" of that so-called talent ...

 

[Deleted member 14439]

we are next....

 

[Ralph]

Discuss the issue, not other members. Next person making comments about another member's alleged motives or other members' intelligence will earn time off. Posts have been deleted.

 

[Bob Owens]

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.

Like I said, they made promises (in return for lower wages) then after the workers serve for up to 40 years(at lower wages) they break their promise.

 

[eolesen]

Yes, it's a crappy situation for those who were under 58 in 2003, but I can't say it's a surprise.

The fact that AA's maintaining coverage with a co-pay is still a lot better than what most of the other "old" airlines are offering their retirees... More than a few used the bankruptcy process to hang their retirees (pre- and post-65) out to dry, and then there were the others (including Southwest) who never offered retiree health as an option regardless of the age the employee retired...

Makes you wonder if Medicare isn't good enough for those over 65, then how can you believe in ObamaCare? Ironic that those opposing what AA's trying to do are union members, which is one of the largest groups backing Obamacare...

 

[Bob Owens]

Yes, it's a crappy situation for those who were under 58 in 2003, but I can't say it's a surprise.

The fact that AA's maintaining coverage with a co-pay is still a lot better than what most of the other "old" airlines are offering their retirees... More than a few used the bankruptcy process to hang their retirees (pre- and post-65) out to dry, and then there were the others (including Southwest) who never offered retiree health as an option regardless of the age the employee retired...

Makes you wonder if Medicare isn't good enough for those over 65, then how can you believe in ObamaCare? Ironic that those opposing what AA's trying to do are union members, which is one of the largest groups backing Obamacare...

I beleive the core part of the Obama plan is to have a public option, that would compete with private insurance companies. Whats the matter with competition?

Several years ago when I lived in Virginia they had a public option for liability insurance, as a result my auto-insurance was a fraction of what it was in NY. Its clear that the Insurance companies are making huge profits off human suffering, I think its time they had a little competition.

How you figure that AA's reneging on a promise it made to its workers to provide this coverage as part of their compensation is similar to Obama introducing a public option to private for profit Heallth Insurance companies is beyond me. You must be an avid FOX News subscriber.

As far as comparing us to SWA, $10/hr more certainly makes up the difference in value. That extra money put in a 401K would more than cover what most would ever see out of the plan. The point is this was considered part of their compensation, "settle for a lower wage now because we are going to provide you these benifits in the future". Much like we were told we should agree to the 25% paycut now because we are saving our pension. Its a promise from a company that routinely breaks its promises.

 

[eolesen]

I like how you flaunt this as a broken promise, Bob. But, it's just another change to the benefits package, and it won't be the last. I suppose it was a broken promise when FlexBenefits came around, and people had to start paying a portion of their benefits cost. And then it was a broken promise when you had to start paying co-pays.

The change to your contract in 2003 was a promise from your union to work for less and with fewer people, in exchange for AMR promising not to offshore MRO and not to seek more serious changes in bankruptcy...

Of course, you'd have no promise with those promises being broken, right?...

The only thing I've come to expect with promises is for them to eventually be broken when reality sets in. I'd think that with all the broken promises the TWU and Eastern have dealt you that you'd realize that by now.

I know you love to lust after the WN guys' contract, but given the option of paying 25% of the cost for health care, I suspect there are quite a few who would be a lot happier paying a portion of their retiree health care vs. paying full price out of pocket after the 30-50% drop in the value they probably saw with their 401K. Remember -- these are the guys who retired "early" and can't draw down their 401K yet without a penalty...

 

[MCI transplant]

<_< ----- AA to triple prefunding, extended health coverage, for Union represented retired employees! Rate to go from $120@ year for a family of two, to $360@year! ----- Sign of the times folks!