According to an article in the Star-Telegram, American Airlines has frozen pay for 19,000 nonunion employees to avoid more job losses amid a steep drop in travel demand.
The article said:
“The current economic recession has left organizations across the country facing unprecedented decisions about business, workforce, spending and overall operations,” Jeff Brundage, American’s senior vice president of human resources, wrote in a letter to employees. “American is no different.”
The pay freeze won’t affect stock-based bonuses scheduled for top managers and executives next week, a move that is causing outrage amongst those affected by the pay freeze. As job losses mount in almost every sector, many businesses are trying to cut costs by freezing pay or even decreasing the pay of existing workers.
These businesses realize that implementing job losses can only go so far in terms of cutting costs. At some point job losses will negatively affect the company’s ability to do business; therefore many businesses are choosing to keep workers, cutting their pay and benefits instead. Workers fearing job losses should keep an eye on moves to cut pay and benefits which can impact a worker’s ability to pay his/her daily expenses and debts.
If you are facing a pay or benefits cut that will affect your ability to pay your debts or daily living expenses, you may be a good candidate for a Chapter 13 bankruptcy . Contact a Dallas-Fort Worth bankruptcy attorney today to discover your bankruptcy options.