CrewPower

US-Based Flight Attendants Lose Social Security and Health Benefits

US-Based Flight Attendants Lose Social Security and Health Benefits

Cathy Pacific has approximately 400 US-based flight attendants in Los Angeles, New York and San Francisco. The company has found a loophole that allows it to stop contributing to their social security and medicare. 

Cathay claims that since they are a non-US company and their aircraft are not registered in the United States, they are exempt from making these contributions. Cathay will save approximately $1 million by not paying into the government programs. This is exactly what Norwegian Air likely plans to do if they gain the type of access to the US market they are seeking.

The Association of Flight Attendants (AFA) is assisting the flight attendants, which are non-union, as they push back against this serious threat which management at other airlines may attempt to copy.

Update: Cathay Pacific flight attendants begin organization process with AFA

Mary Lou Savage, the AFA’s employee benefits attorney, said:

“There is no reason that Cathay could not have continued withholding and paying payroll taxes. The company unilaterally, without notice, made this decision for the cabin crew, permanently jeopardizing their retirement.”

The Cathay Pacific situation should be watched very closely. US carriers may attempt to create offshore corporations and register aircraft in other countries in order to reduce their labor costs.

Read more about Cathay Pacific flight attendants

CrewPower
@ gailendavid

Gailen David is co-creator of SavvyStews.com. He was a flight attendant for American Airlines for 24 years. He's Executive Producer and Co-Host of national TV travel talk-show , "The Jet Set"as well as a correspondent with CNN Airport Network. Gailen is also very passionate about improving the lives of airline workers who've sacrificed so greatly throughout the years to help their companies survive and thrive. Gailen's Website and his Facebook Page..Plus, his Aluminum Lady and Delta Dawn videos are based on the corporate culture that exists at US airlines.

More in CrewPower

Norwegian Flight Attendants Now AFA Represented

Gailen David Mar 30, 2017

Mesa Airlines Flight Attendants Vote 99.56% to Authorize Strike

Gailen David Mar 29, 2017

Time For Flight Attendant Mega-Union

Gailen David Mar 5, 2017

Backroom Deals at American Heighten Arbitration Anxiety

Gailen David Jan 12, 2017

Norwegian Air Permit Would Allow Offshoring US Airline Jobs

Gailen David Dec 6, 2016

Largest Flight Attendant Union Responds To Election

Gailen David Nov 9, 2016

Cathay Pacific US-Based Flight Attendants Plan To Vote Union

Gailen David Oct 25, 2016

American Airlines Pilots Push Union Merger

Gailen David Oct 25, 2016

American’s New Uniform…On Point or Poisonous?

Gailen David Oct 10, 2016