Writing for In These Times, Josh Eidelson profiles American Airlines’ bankruptcy and the effect it is having on the company’s workers. Part of the story is how Bain Capital, Mitt Romney’s former company, is the consulting firm guiding the bankruptcy. One union official quips that Romney is a “job cremator.”
Politics aside, American Airlines/AMR has asked for and received concessions from its unions. The company is using bankruptcy as a tool to break its current contracts. Employees will be moved from pensions to 401(K) plans – the kind that Wall Street loves to serves. There will also be layoffs.
One of my clients has worked for this company. She has lost half of her pension and hasn’t had a raise for the last few years. It leads one to ask: Is American Airlines financially bankrupt or morally corrupt?
Update: The number of employees being cut by American is 13,000. The "lucky" employees who keep their jobs face steep cuts in salary and benefits. Don't listen to cliches about job creators -- large corporations only care about more and more profit. People mean nothing to them.