A last-minute provision is inserted in military spending legislation approved by congress two weeks ago. This change has annoyed the top Democrat and Republican on the Senate Finance Committee that has asked employee pension data from American Airlines and Continental Airlines.
The changes are aimed at reducing the carriers’ obligation to employee pension fund. Few other smaller airlines would be required to make their employee pension funds over time. The break is estimated at roughly $2 billion. Both carriers said the changes were needed to give them parity with carriers like Northwest and Delta.
To punish the companies, the senators are forcing them to provide extensive information on their pension and compensation plans.
It is said that an investigation would be done to see if the changes snuck into the war funding bill are fair. Committee chairman Max Baucus, D-Mont and ranking Republican Charles Grassley of Iowa have asked for the response from the CEOs of Houston-based Continental and Fort Worth-based American by June 15.
Source: Chron.com
