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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.
Sue DeBrule
1-800-606-0613
Email
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