Categories: CrewPower

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

TJS Author

Share
Published by
TJS Author

Recent Posts

Jet Skis Join Chicago’s St. Patrick’s Day Fun

People in Chicago take St. Patricks Day serious and their famous river dyeing event is…

1 day ago

Spring Travel Without the Crowds: Under-the-Radar Getaways to Book Now

As spring break crowds head to the usual hotspots, it’s a great time to consider…

1 week ago

Navidades en el Río Rin con Viking River Cruises

Acompañenme y descubramos los mercados navideños a bordo del Viking Kara.

1 week ago

Snow, Stories & Sailing North

Episode 9 of The Jet Set delivers a fun mix of winter travel inspiration, entertainment…

2 weeks ago

A Little Heat, and A Little France

Episode 8 of The Jet Set is a flavorful journey that takes viewers from the…

2 weeks ago