Invoking an emergency clause in its contracts with unionized employees, American Airlines has announced that it will withhold severance pay from the 20,000 employees who are being laid off. The AFL-CIO has responded by pledging to do everything in their power---including taking legal action---to prevent American from going forward with this plan. Although American Airlines officials have said that the $15 billion airline industry assistance plan approved by Congress will not be enough to save the company if it is forced to pay severance, it is so far the only airline that has announced a withholding of severance pay for planned layoffs.
See LISA GIRION and NANCY CLEELAND, Los Angeles Times, September 24, 2001