Conventional Wisdom tells us that the New York Times is a liberal newspaper. The paper’s union employees would probably not agree. According to Mike Elk, who blogs about working at In These Times, the paper is giving its former CEO Janet Robinson a $15 million severance package while freezing contributions to union employees’ pension plans and cutting their pay. The employees have sent a letter expressing their outrage to management. Given corporate America’s recent actions, I hope the employees aren’t expecting a positive response. When employees at United Airlines sacrificed during a bankruptcy, executives took bonuses when the company became profitable again. Why should we expect anything different from the Times?
Bankruptcy and Immorality
Tags: bankruptcy, pensions, severance
One of my clients told me a story that made my blood boil. He’s working at a plant that slated to close at the end of the summer. I asked if he’s going to get a severance. He said probably not. The company, which has always been profitable, is declaring bankruptcy to avoid paying severance. My client has only been with the company three years, so he doesn’t face the problem many of his co-workers do: bankruptcy would enable the company to bail out on its pension payments.
This isn’t the first time I’ve heard this story lately. One of my clients works for a large airline. Half of his pension was lost in a restructuring. Workers across the company are facing this creative accounting/legal trick.
If a company is failing, it should have the option of bankruptcy. If a company simply wants to save money, it should not be able to declare bankruptcy. Citizens have restrictions placed on declaring bankruptcy. There is pain involved. For big business? It’s all good.