US Airways Agrees Not To Eliminate Retiree Health Benefits
US Airways on Wednesday "backed off" from a plan to eliminate health benefits for retirees and agreed to continue to cover some of the cost of their health care, the Washington Post reports. US Airways did not release the details of the agreement.
The planned elimination of health benefits for retirees was part of an effort by US Airways -- which has remained under federal bankruptcy protection for two years -- to cut about $1 billion in annual labor-related costs to avoid liquidation. Judge Stephen Mitchell on Thursday at a U.S. Bankruptcy Court hearing had planned to rule on a request from US Airways to eliminate health benefits for more than 11,000 retirees, as well as other labor-related issues (Alexander, Washington Post, 1/6).