Nearly two months after the airline bankruptcy announcement, company executives will meet today to discuss plans for debt restructuring efforts. After several rounds of job cuts, reductions to services and the controversial hiring of financial advisors, airline employees brace for the worst by week’s end.
Up For Discussion
In cases like this, bankruptcy is very much a negotiation process. A lot is at stake with this bankruptcy case, including the financial wellbeing and future of thousands of employees. As employee unions fighting to keep pension and employee benefits from taking the hit, American has tough decisions ahead.
Company executives are scheduled to meet today with the airline’s top three unions to discuss a possible plan for debt resolution. Items up for discussion are the closing of an aircraft maintenance base, termination employee pensions, longer hours for employees and the outsourcing of many job positions. While many of these items are meeting opposition, American may not be granted all of these requests. The federal bankruptcy code dictates mandatory negotiations with unions and final approval of changes to current contracts can only be authorized by the court.