Posted: April 28, 2014
Source: James P. Hoffa, Huffington Post
Private equity firm Cerberus Business Finance, LLC, is looting a bankrupt airline that for 66 years ferried troops and equipment to war zones in the Middle East and Southeast Asia. Cerberus’ greed has tragic consequences for pilots and flight attendants now without a job, a paycheck or health insurance.
Cerberus took control of the bankrupt airline, World Airways, and retroactively cancelled the pilots’ health insurance coverage without telling them. A pilot who’d been with World for 25 years went into a coma thinking he was covered. When he came out of the coma, he found Cerberus had cancelled his health insurance — and he owed $2 million for his medical care.
As president of the International Brotherhood of Teamsters, I have seen private equity firms plunder company after company, taking rich fees for themselves and cutting costs until there’s nothing left to cut. Time and again I’ve seen their reckless behavior drive companies to declare bankruptcy. When the dust settles, you can count on Wall Street contracts being honored. And you can be pretty sure contracts with workers will be abrogated.
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