FORT WORTH, Texas (CBS.MW) -- Shares of AMR Corp., the parent of American Airlines, rose 18 percent Thursday after the carrier''s flight attendants became the final union to approve labor concessions, keeping the airline out of bankruptcy for now.
But even as investors cheered the decision by the attendants to accept concessions, another union indicated it might go back on its decision to sign on in light of new information about executive pensions.
Voicing concern over executive pension protection disclosed in the airline''s latest filing with the Securities and Exchange Commission, the head of the Transport Workers Union''s American Airlines group said AMR didn''t disclose the information. The TWU voted to approve concessions on Tuesday, the same day as the 10-K filing.
We have signed no new agreement, and in light of the disclosure in AA''s SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy, wrote James Little, director of the TWU Air Transport Division, in an online message to members.
The company''s top executives, according to a trust agreement detailed in that SEC filing and first reported in The Wall Street Journal, have protected part of their company retirement program in the event of bankruptcy.
The flight attendants union, which voted Wednesday to accept labor contract concessions, said the pension protection was the equivalent of an obscene gesture from management.
Knowledge of this outrage would probably have doomed any agreement, and rightly so, wrote John Ward, president of the APFA in an online update
But even as investors cheered the decision by the attendants to accept concessions, another union indicated it might go back on its decision to sign on in light of new information about executive pensions.
Voicing concern over executive pension protection disclosed in the airline''s latest filing with the Securities and Exchange Commission, the head of the Transport Workers Union''s American Airlines group said AMR didn''t disclose the information. The TWU voted to approve concessions on Tuesday, the same day as the 10-K filing.
We have signed no new agreement, and in light of the disclosure in AA''s SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy, wrote James Little, director of the TWU Air Transport Division, in an online message to members.
The company''s top executives, according to a trust agreement detailed in that SEC filing and first reported in The Wall Street Journal, have protected part of their company retirement program in the event of bankruptcy.
The flight attendants union, which voted Wednesday to accept labor contract concessions, said the pension protection was the equivalent of an obscene gesture from management.
Knowledge of this outrage would probably have doomed any agreement, and rightly so, wrote John Ward, president of the APFA in an online update
