The employees no longer want to make concessions and the airline is unwilling to continue making contributions without them. The plan will not be terminated, however. While new employees will not get shares, current employees will continue to have shares in their accounts until they leave.
Pilots also get stock options and employees can purchase shares through stock purchase plan.
The bill to amend the Fair Labor Standards Act to clarify that option awards do not constitute compensation for overtime calculation purposes is now on a very fast track. Senate leaders have pledged to move the bill directly to floor with committee consideration after House passage. Passage is anticipated in the very near future. The bill contains provisions covering past plans as well as future ones. Periodically, we report on the kinds of company announcements not likely to make the news, but typifying the employee ownership world.