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US Airways & Employee Retirement Plans

A company∆s decision to cut pension plan contributions puts employees in the middle of two unsavory alternatives. On the one hand, unions and employees groups are up in arms when companies reduce employee retirement benefits, which workers have come to expect and rely on. On the other hand, in the case of ailing companies such as US Airways, such cost-cutting measures may be a means to save a company from financial ruin, a situation that could cost workers not only company retirement contributions but the employees∆ jobs as well. Adding to this dilemma is the fact that many workers have portions of their portfolio invested in company stock. A company∆s poor performance due to financial difficulties lowers the value of employee-held stock, which additionally threatens employees∆ retirement. Whether a company reduces employee benefits to improve share price or maintains those benefits and sees a loss in profitability, leading to a reduction in share values,


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US Airways & Employee Retirement Plans. (1969, December 31). In Retrieved 14:32, October 23, 2014, from
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