|
A Bonus for Airline
Employees
 Months
before September 11, airlines were asking employee groups to
make wage and benefit concessions to help "save" the
faltering companies. After September 11, things only got worse.
Tens of thousands of airline employees have faced layoffs, outright
job loss, or the insecurity of knowing that their jobs are not
secure. Airline executives, desperate to avoid bankruptcy, have
asked employees to take cuts in benefits and pay to help "save"
the companies-and of course, their jobs. No company, no job.
While some of the executives offered to forego their salaries,
they didn't mention that they would retain their bonuses and
stock options. Some employees agreed with the plan to make concessions,
while others pointed out that similar compromises made previously
by employees of Braniff, PanAm, TWA and Eastern did not save
those employees' jobs. Nevertheless, concessions were made by
those who had not already lost their jobs. There really was
no choice.
The Nitty-Gritty
from the Top
In a hearing before the Senate Committee on Commerce, Science
and Transportation, Mr. Edward Wytkind, President of the Transportation
Trades Department, AFL-CIO, stated the problem this way:
"Aviation
industry workers, including employees of airlines, Boeing
and aerospace suppliers, and airports, have suffered unprecedented
job loss and economic uncertainty. Some 100,000 airline employees
are out of work or facing imminent lay-off. Another 30,000
Boeing workers are laid-off along with 51,000 additional aerospace
employees. But it is the multiplier effect of airline lay-offs
that is most startling. Airline industry data show a combined
workforce exceeding 600,000. However, the total workforce,
if related job sectors such as airports, aircraft manufacturing
and suppliers are included, totals 10.9 million. In other
words, one airline worker translates into 18 additional jobs
in our economy. And with bankruptcies looming large, it is
easy to conclude that the staggering job losses will only
grow."
 While
the airlines themselves received huge bailouts from the federal
government after 9/11, Congress seemed unconcerned about the
fate of the tens of thousands of airline workers Wytkind mentioned.
Many people who flew without a care before 9/11 are now hesitant
to board a plane at all. While the need for airport safety is
obvious, new security requirements have made the airport hassle
three times the ordeal that it was previously. Skyrocketing
fuel prices have translated to higher costs for airlines and
higher passenger fares. This means fewer passengers, fewer planes,
and fewer jobs in the airline industry, with employees paying
the biggest price.
In June of 2005, US Airways terminated its pension plan. Shortly
thereafterUnited Airlines went to bankruptcy court, and its
petition to eliminate its pension plan was approved by a Chicago
bankruptcy judge in May of 2005. That wiped out $9.8 billion
in future benefits United Airlines had promised its employees.
Since then, American, Delta and Northwest have all fallen into
financial trouble, causing more layoffs.
Employees all over
the US have long been reassured by these words: "If anything
happens to the company, the Pension Benefit Guaranty Corporation
(PBGC) will pay your pension. It's like pension insurance. We
pay into it for you." It sounded like a foolproof plan
to laid-off airline workers, as it would to most of us, until
they found out that the PBGC is underfunded and does not pay
retirees their full pension amounts. Once again, though,
airline executives receive everything they were promised.
Couldn't they have
worked somewhere else? After all, the unemployment rate is low.
Jobs are plentiful. Right? Not exactly. The US Department of
Labor reports that 7 of the 10 jobs expected to grow most rapidly
until 2012 pay less than $13.25 an hour-some much less.
The 7 top fields are retail sales clerk, customer service
representative, food service worker, cashier, janitor, nurse's
aide, and hospital orderly.  For
comparison, look at the example of an airline mechanic. In Indianapolis,
where mechanics checked hundreds of planes for safety, mechanics
averaged $31 an hour. Family men in their 30s and 40s, they
bought houses and cars and other things in line with that salary.
While they were sent for "re-education and training"
so that they could re-enter the workplace, they found that the
new jobs they were offered were far below their skill levels
and far below the wages they needed to pay their bills. They
were concerned that they would have to file for personal bankruptcy-but
with no federal bailout to save them. Many laid-off airline
employees take lower-paying jobs simply for the health insurance,
hoping somehow to hold on to their houses and cars and to hold
off the credit card companies until things improve.
Suppose you are
still employed by an airline, but your paycheck and benefits
have shrunk, or you're a retiree who got the "PBGC shock."
Did your mortgage shrink? Your car payment? Your insurance or
phone or grocery bill? Of course not. You are left to make up
the shortfall.
In the title of this
article, we mentioned a bonus for airline employees. That means
former airline employees, too. Whether you're still flying the
not-so-friendly skies, working at a low-wage job, or trying
to figure out how to survive on your reduced pension, there
is an easy way to make up the deficit in your budget. You can
do it wherever you are, whenever you want. You will be in control
of how much you work and how much you make. Many call it a home
business, but the truth is that you can carry on business from
your hotel room, at the airport, on your lunch break, or at
home with your family.
All you need
is a computer and a phone. It's an answer that has eased
the minds of hundreds of people in situations like yours.
For free, confidential
information, simply fill in the web form below.
Heidi
B. Dietrich
617-905-3946
Email
|||||||||||A
Supportive Environment
|||||Owning
a Franchise||||A
Bonus for Airline Employees
|
