Our Mission Statement
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.
How Bankruptcy can Affect American Airlines Retirees
What protections do Employees and Retirees for Health and Wwelfare Benefits when a Company files for Chapter 11 bankruptcy?
Bankruptcy protections for Active and Retired employees vary depending on whether the pay and health and welfare benefits were protected by a contract or not and whether the person is Active or Retired when the company filed for Chapter 11 bankruptcy protection. Following the filing by a company for Chapter 11 bankruptcy protection, the laws of the United States allow a business the opportunity to restructure their debts in order to continue operating and to preserve jobs. Companies and individuals to whom debts are owed can expect to lose much of what they were promised, usually pennies on the dollar in the bankruptcy process.
A business such as American, that has made promises to their Employees and Retirees without the benefit of a contract in some areas, may be allowed to make changes, reduce or even terminate Active employees pay and health and welfare benefits as they deem necessary in an effort to reduce their cost structure and exit bankruptcy. Workers protected by a Union contract however, will have the ability to go through an 1113 process, relating to every aspect of their contract provisions before the company can change their contractual work rules and then when and if necessary, enter into an 1114 process to obtain relief with regard to Health and Welfare benefits, Disability and Survivorship benefits and Iife Insurance benefits. Unlike Active workers, Retirees, both Union and Non Union have a limited protection provided to them under the bankruptcy statue 1114 (l) during the bankruptcy process which specifies that a “plan, fund or program” cannot be changed within 180 days of the bankruptcy unless a committee is formed, and the company sits down with the group and tries to work out a compromise that is acceptable to the affected parties or if an agreement cannot be reached by the parties, the Company can go back to court and recommend to the court a solution they believe is fair and favors the balance of the equities. Read more here...
The next health benefits live web chat with Paul Mazzara, AMRRC chair, is scheduled to be held on December 12, 2013 at 7pm CST. Log on at www.rbassociation.com. At that time Paul should have confirmation of the status of the Supplemental Retiree Medical Plan for those currently covered as well as answers to your billing questions regarding the plan’s retiree payments.
November 5, 2013
On October 21, 2013, the United States Bankruptcy Court overseeing American Airlines chapter 11 bankruptcy case entered an order confirming American Airlines chapter 11 plan. There has been some confusion about what the confirmation order means for American’s 40,000 plus retirees and their benefits. The fact is that the entry of the confirmation order will not change all that much for retirees. for more, click here.