American Execs Protected From Bankruptcy
This sucks. Executives at struggling American Airlines, which has demanded significant pay and benefits cuts from its unions in order to stay bankruptcy and attempt to make the company solvent has taken steps to protect executives and board members from any bankruptcy matters. It was announced yesterday that American has exempted the benefits and pension plans for the executive board and directors from any bankruptcy matters and has granted huge million dollar bonuses to many executives at the same time the bulk of the company was forced to take huge pay cuts.
The unions are lining up at the courthouse on this one. I don’t know the law – it should be illegal but the law is probalby written in such a way to protect these very moves. It will take a very brave judge to call any of this illegal. Keep watching this – it looks to be interesting.
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