Reduced Company Retirement Contributions

Reduced Company Retirement Contributions

A recent US Airways decision to cut company contributions to employee retirement plans in order to save costs may be an indication of what employees have to look forward to in industries across the board (Crawley & Pelofsky, 2004). In the case of the troubled airline, which recently filed for its second bankruptcy in two years, reducing $110 million in retirement payments for mechanics and flight attendants is part of a last-gasp effort to avoid liquidation and give the company some "breathing room" (Crawley & Pelofsky, 2004, p. 1). In the past several years, traditional airlines such as US Airways and Delta have taken major financial blows due to the terrorist attacks of September 11, skyrocketing oil prices, and competition from discount airlines such as Southwest with more streamlined cost structures. However, the move toward cost cutting through reduced contributions to employee benefits, especially retirement benefits, may be the harbinger of a future tren

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Approximate Word count = 704
Approximate Pages = 3 (250 words per page)

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