Healthy companies use bankruptcy to cut labor costs: Stephen Gandel
(NEWSER) - American Airlines has $4 billion in the bank, doesn’t need emergency financing, and feels quite confident it can keep paying its vendors, business partners, and creditors in full. So where was the crisis that pushed it into bankruptcy ? “It doesn’t appear there was any,” writes Stephen Gandel at Time . Well, according to its press release it was to “address our cost structure, including labor costs.” Translation: American is trying to force its union, which it’s been unsuccessfully negotiating with, to take pay and benefit cuts. More»
