Adding Insult To Injury!

twuer

Veteran
Jul 9, 2003
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How much more proof do you need that Delle's (amfa's) radical stance is not the way to go????...............


Reuters
UAL to Miss More Pension Payments
Friday July 23, 5:07 pm ET
By Meredith Grossman Dubner

CHICAGO (Reuters) - United Airlines said on Friday it plans no further
pension payments this year
, angering unions who fear the carrier could
scrap their retirement plans altogether to lower costs and attract badly
needed investors.

The No. 2 U.S. airline told a bankruptcy court judge that plans to hold
off on a $404 million contribution in September and a $91 million
contribution in October will give it more flexibility to manage its
overall assets.

"It's a step to reduce our costs and attract the financing we're going to
need to exit bankruptcy,"
Chief Financial Officer Jake Brace told
reporters.

The company did not say when the payments would be made, but demoralized
workers fear they will never get that money.

United, a unit of UAL Corp. deferred a $72 million pension payment last
week, prompting speculation of deeper cuts.

"While United action falls short of an outright termination of the
pension plans, the company's actions make termination of the pension
plans likely," Greg Davidowitch, president of the Association of Flight
Attendants, said in a statement.

The International Association of Machinists said it was exploring legal
action. "We want to know if United is trying to dump its pension
obligations on U.S. taxpayers as another way to get the federal
government to finance its bankruptcy following their failed bid to
receive a loan guarantee," Robert Roach, IAM general vice president, said
in a statement.

Separately, United told the bankruptcy court it had arranged an
additional $500 million in debtor-in-possession financing to keep
operations going during restructuring.

The airline, which has been in Chapter 11 since December 2002, has until
June 30, 2005, to repay the loans. Lenders include General Electric Co's
GE Commercial Finance, J.P. Morgan Chase & Co., Citigroup Inc. and CIT
Group Inc.

The company also received another 30-day extension to file its
reorganization plan but said it will likely seek a "multi-month"
extension in August.

United was denied a $1.1 billion government loan guarantee last month,
forcing it to restructure plans for securing bankruptcy exit financing
and putting immediate pressure on the Elk Grove, Illinois-based company
to reduce ballooning pension costs.

United has four employee pension plans which now are undefended by about
$4.1 billion over the next five years.

"Because United's existing pension funding obligations will remain a huge
financial burden after exit,
it is incumbent on United to study all
possible options and to determine whether United can sustain this burden
and still attract exit financing," the company said in an update to the
court on its reorganization.

Randy Clerihue, a spokesman for the Pension Benefit Guaranty Corp., the
federal agency that insures corporate pensions, said it was rare for
bankrupt companies that skip contributions to make up the shortfall.


"Obviously it heightens concern," Clerihue said. "It's not a foregone
conclusion that plans terminate, but we don't often see those plans
riding through without those shortfalls corrected."

US Airways terminated its pilots' pension to exit bankruptcy last year.

Airlines, particularly the biggest carriers, have been pressured by
record high fuel prices and competition from low-cost carriers.

Brace told reporters United fuel costs this year are now estimated to be
$900 million more than projected. But he did not expect any major changes
to the size or scope of United's route network.
 
  • Thread Starter
  • Thread starter
  • #2
TOO MUCH, TOO LITTLE, TOO LATE!!!!!!!!!!!!!!!

And so I ask again.........what did you think would happen????????





AMFA Calls United Airlines Financing Agreement Barring Pension
Contributions `Shameful'
Friday July 23, 4:04 pm ET

LACONIA, N.H.--(BUSINESS WIRE)--July 23, 2004--O. V. Delle-Femine,
national director of the Aircraft Mechanics Fraternal Association
(AMFA), reacted sharply to today's announcement that United Airlines
parent company UAL Corp. reached an interim financing agreement that
bars the firm from making pension contributions while the agreement is
in force.

"It is shameful that management is seeking to take away even more from
those who have already given the most--the employees and, most
scurrilously, the retirees of UAL, current and future. UAL first
demanded increases in contributions for promised medical insurance from
those who have the least from which to pay for such coverage, and now is
threatening the very source of funds needed to pay for medical insurance
and the other needs of life itself," he said.

"The company cannot amend the plan to reduce accrued benefits. Accrued
benefits include all benefits for current retirees and terminated vested
participants. For active participants, this means benefits attributable
to all service to date cannot be reduced. The only way accrued benefits
can be reduced is if the plan is turned over to the Pension Benefit
Guaranty Corporation (PBGC) and either the accrued benefits exceed the
PBGC guaranty levels, or the PBGC ultimately cannot meet its obligations.

"The company can amend the plan to reduce or eliminate future benefit
accruals. This would not impact retirees or terminated vested
participants, but would reduce future accruals and the ultimate benefits
for active employees. It's not clear at this juncture whether a change
to reduce future accruals would require bargaining, or if the bankruptcy
status would allow the company to do this unilaterally.

"From a funding perspective, there are major implications if the company
does not fund its 2004 minimum contribution by September 15, 2004. The
implications of delays up to that date are minor."

Earlier this week, executives of United Airlines met with national and
local AMFA leaders at AMFA's invitation to discuss United's recent
deferral of its $72.4 million quarterly contribution to employee pension
plans. Union officials voiced concern that the deferral will cause
severe long-term problems with the pension plans if United is unable to
make required payments.
DUH!!!!!!
 
And Delle sezzzz!!!!

We would have been better off in Bankruptcy!

The "Proof is in the Pudding"... :wacko:

-------------------------------
amfa: The YUGO of the labor movement
Where bargaining means YOU GO....!
 
Do you people even read your own posts! It says United is trying to make these cuts! AMFA is fighting them and the other unions are doing what?? They are helping spread fear just like they always do, so when they capitulate they can say it was for the good of the membership (my A*^). The twu is a professional roll over and play dead union.
Supporters of the twu get your peaNUTS out of your wife's purse. Stand up for your fellow Technicians.
 
What gets me is that the twu does not realize the pressure started here at AA when Jim Little with his "No further ratification" dictatorship stance, allowed the company to keep the $46 million in the hide away pension fund for upper management. I think there was 45 individual executives named in the fund.

Did the twu not think something was up??? Did they assume they put the money in the fund just for fun??? What were they thinking???

The writing was on the wall for everyone to read and it was in plain easy to understand English!!! Surly the mighty watchdog twu read it?
 
It's All AMFA's Fault!!!!!!

Reuters
UPDATE - US pension agency warns United on payments
Monday July 26, 4:35 pm ET


(Adds details)
WASHINGTON, July 26 (Reuters) - The U.S. agency that insures pensions warned United Airlines (OTC BB:UALAQ.OB - News) on Monday that its plan to stop pension payments while it tries to escape bankruptcy was counter to federal law.

"UAL's announcement last Friday that it would no longer make legally required contributions to its employee pension plans while in bankruptcy is of great concern," said a letter from the U.S. Pension Benefit Guaranty Corporation to United Airlines.

The agency demanded information on how the No. 2 U.S. airline would close the funding gap in its pension plans.

United on Friday said it plans no further pension payments while it remains under bankruptcy protection, angering unions who fear the carrier could scrap their retirement plans altogether to lower costs and attract badly needed investors.

If United terminated its pension plans, the PBGC would step in and pay benefits, but only up to certain limits.

The letter, from PBGC executive director Bradley Belt to United chairman Glenn Tilton (News) , noted the risk to plan participants and to the federal agency and said it had a right to know United's intentions.

It also said that both the Internal Revenue Code and the Employee Retirement Income Security Act required regular pension plan contributions.

A strategy by United not to make these payments prior to exit from bankruptcy would be "inconsistent" with these laws, Belt said.

United has been in Chapter 11 since December 2002 and is trying to attract the financing it needs to exit bankruptcy.
 
It has to be delle's fault...after all...amfaites blamed Jim Little for the concessionary package...or does that door only swing one way? You boys crack me up.





Looks like TWU in 2004!
 
Nightwatch said:
It has to be delle's fault...after all...amfaites blamed Jim Little for the concessionary package...or does that door only swing one way? You boys crack me up.





Looks like TWU in 2004!
I have not seen the AMFA Labor Agreement signed by Delle-Femine "without further ratification" of the AMFA membership, nor have I seen the lawsuit, where AMFA argues in Federal Court that the AMFA Consitution does NOT require membership ratification of changes or amendments to the Labor Agreement.

Feel free to show us all that anytime!

The fact that you cannot tell the difference, demonstrates world record head buried depth on your part.
 

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