TWU Wins Freeze of Pension Plans at American Airlines
TWU wins pension freeze at American.
TWU workers at American Airlines appear closer to keeping their pensions once the airline emerges from bankruptcy. (Photo: American Airlines)
TWU workers at American Airlines appear closer to keeping their pensions once the airline emerges from bankruptcy. (Photo: American Airlines)

Bankrupt AMR Corp. has agreed to freeze the pension plan in place for members of the Transport Workers Union (TWU) rather than shift the burden to the U.S. government’s Pension Benefit Guaranty Corporation (PBGC), the TWU announced in a statement issued Wednesday. The parent company of American Airlines had originally proposed terminating the pensions of all 130,000 of its employees, but, according to the TWU, AMR has reversed its position and agreed to drop its demand for another $600 to $800 million in concessions, which the company said it would need to cover the cost of the pension-plan freeze. The TWU represents mainly maintenance and fleet service workers at American and its regional subsidiary, American Eagle.