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Home / Business / Companies / Airlines

Only lucky get payouts in US

28 Sep, 2001 09:41 AMQuick Read

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Many of the 100,000 US airline workers who have lost their jobs in the past two weeks will not receive redundancy payments.

Some managements have made use of clauses in their union contracts allowing them to void severance payment requirements in emergencies or under extraordinary circumstances.

However, AMR, owner of American Airlines
and TWA, announced yesterday that it would after all give the 20,000 being laid off some kind of payment. AMR said the change of policy had been made possible by a Government decision to give it $US900 million - part of a $US5 billion assistance package for US airlines - to help cover extra security costs and keep airliners flying.

The company did not indicate what sort of help it might give to redundant staff.

Continental Airlines, which has agreed to assist the 12,000 staff it is laying off, said its payments would cost $US60 million.

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NZ Ministry of Foreign Affairs and Trade: 0800 872 111

US Embassy in Wellington (recorded info): 04 472 2068

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