The ongoing saga of American Airlines and its troublesome employee pension obligations took a turn for the positive – at least in the eyes of those 130,000 workers – with news Wednesday that the embattled air carrier will not in fact be dumping its pensions.
Instead, the money employees have earned will be frozen from here on in, in a move oddly reminiscent of recent changes at both General Motors and the Bank of America.
GM and BofA sweetened their deals, somewhat, by offering enhanced 401(k) benefits in place of their costly pension contributions; no word yet if American will provide anything extra for its workers.
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