The American Airlines Retirees Committee (AMRRC) was formed by the retirees of American Airlines, for the retirees, to provide representation for all work groups at American Airlines past, present, or future.. As an organization, we will create the affiliations and partnerships necessary to gather the communication and education needed to ensure each and every retiree’s interests are protected. We are committed to being one voice for many faces.
On Friday, April 18, 2014, in a long anticipated ruling in the American Airlines bankruptcy case in federal bankruptcy court, Judge Seal Lane ruled in favor of the American Airlines' retirees for the vast majority of retirees. American Airlines had filed a motion in 2012 for summary judgement in its bid to make retirees pay for 100% of the cost of their retiree benefits.
Although this is a victory for the majority of the retirees involved in this case, it is not necessarily the end of American's efforts to take away benefits from it's retirees. American could now decide to bring this matter to a full trial or they could choose to appeal Judge Lane's ruling on the summary judgement to the federal appellate court. Whatever American Airlines decides to do going forward with this case, this is a huge victory for most of the retirees involved in this suit. It means that for at least a while longer, they will continue to receive the medical and life insurance benefits that they were promised when they retired.
However, American continues in its efforts to devalue and downgrade retiree travel benefits as announced on January 2 this year. This ruling has no effect on American's moves in that area.
Below you will find a link to an article in the Dallas Morning News concerning this ruling, as well as a link to the full ruling issued by the court.
TWU News Release
FOR IMMEDIATE RELEASE
December 17, 2014
Washington, D.C. – The “new” American Airlines is attempting to renege on the legal and binding commitment made during bankruptcy restructuring by sneaking federal legislation through Congress that would let the airline slash its pension contributions. American is going to Capitol Hill to try and secure relief from these commitments during a period of unprecedented profitability one year after exiting bankruptcy and agreeing to the pension funding terms.
But here’s the thing: American Airlines doesn’t need relief at a time when earnings are skyrocketing. Current Wall Street 2014 forecasts predict that AA will have pre-tax profits of $4.2 billion. Between 2015 and 2017, Wall Street expects AA’s pretax profits to surge to over $6 billion each year or $18 billion in total. That’s $2 billion more each year than was forecast one year ago!
In 2006, Congress granted the airlines special relief for their pension funding requirements. American, Delta and other airline pension plans were frozen during bankruptcies. Delta was allowed to use a 17-year amortization period and an interest rate of 8.85%. (Amortization is the paying off of debt with a fixed repayment schedule in regular installments over a period of time). American was granted a 10-year amortization period with an 8.25% interest rate. Today, American’s executives are claiming they need relief to compete with Delta. But they also state that whether this amortization period is extended or not AA will continue to fund its pension obligations and is happy to do so.
What does TWU say? If you’re happy to do so, then do it! Don’t put our members’ pensions at risk. Keep your word. Uphold the commitments you made in federal court during bankruptcy. Don’t steal our retirement when you’re making billions of dollars in revenue.
I am calling on all TWU locals, members and retirees to stand as one with our brothers and sisters at American Airlines. This union will be fighting AA's latest attempt to slash our pension funding with every ounce of our collective strength. We need to make sure that our members can retire with dignity and enjoy the retirement that they have earned. Over the course of the next several weeks, the TWU International will be blasting out action alerts and urging members to contact their elected representatives to voice their opposition to AA's scheme.
The International will also be disseminating information to members on our grassroots action plan, spearheaded by the TWU State Conferences and our Air Transport Division locals. The TWU International is committed to pitching the entire force of our national union against this plot to ultimately rob members of their hard-earned pensions. American Airlines, this will not fly!
The Transport Workers Union of America (TWU) represents 200,000 workers and retirees in commercial aviation, public transportation and passenger railroads. The union is an affiliate of the AFL-CIO.
Transport Workers Union of America, AFL-CIO
501 3rd St NW / Floor 9 / Washington, D.C. 20001
Tel: 202.719.3900 / www.twu.org
Harry Lombardo, International President / John Samuelsen, International Executive Vice President / Alex Garcia, International Secretary-Treasurer / John Bland, International Administrative Vice President / Gary Maslanka, International Administrative Vice President
The AMRRC is an all volunteer, non-profit organization. We do have legal, distribution, communication, and other types of operating expenses. Your help is needed if we are to continue our mission.
Dues are voluntary, but we suggest $25 annually. Please help keep AMRRC going with any donation you could provide. Payment may be made by check or by credit card. If you pay by check, make the check out to AMRRC and mail to:
PO Box 1178
Bedford, TX 76095
If you wish to pay by credit card, go to this page and follow the instructions. http://www.amrrc.net/amr-support.php