Decision 2004
Veteran
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- Mar 12, 2004
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WHile we all know that George W. Bush is not Labor Friendly, there is evidence that his appointees are looking out for workers interest...
US Labor Dept says United agrees pension monitor
Tuesday August 17, 7:16 pm ET
WASHINGTON, Aug 17 (Reuters) - United Airlines has agreed to the appointment of a monitor to represent the interests of its pension plan participants, the U.S. Department of Labor said on Tuesday.
The bankrupt carrier skipped a $72 million payment in July to its retirement plans and said it would miss nearly $500 million in contributions later in the year.
"United Airlines' decision to stop funding its pension plans made clear the need to appoint an independent fiduciary to represent the interests of workers and retirees," Labor Secretary Elaine Chao said in a statement.
Last week, the U.S. agency that insures corporate pensions urged a bankruptcy court to prevent United, a unit of UAL Corp. (OTC BB:UALAQ.OB - News), from halting the contributions.
The Pension Benefit Guaranty Corp. says the United plans are underfunded to the tune of $8.3 billion.
Unions representing the airline's machinists and flight attendants, in court filings, have also objected to the provision in United's latest bankruptcy financing agreement, which prohibits pension contributions while the airline is in Chapter 11 bankruptcy protection from its creditors.
Chao said the independent fiduciary was authorized to review the funding policy of United's pensions, assert claims and, if necessary, bring litigation on behalf of the plans.
US Labor Dept says United agrees pension monitor
Tuesday August 17, 7:16 pm ET
WASHINGTON, Aug 17 (Reuters) - United Airlines has agreed to the appointment of a monitor to represent the interests of its pension plan participants, the U.S. Department of Labor said on Tuesday.
The bankrupt carrier skipped a $72 million payment in July to its retirement plans and said it would miss nearly $500 million in contributions later in the year.
"United Airlines' decision to stop funding its pension plans made clear the need to appoint an independent fiduciary to represent the interests of workers and retirees," Labor Secretary Elaine Chao said in a statement.
Last week, the U.S. agency that insures corporate pensions urged a bankruptcy court to prevent United, a unit of UAL Corp. (OTC BB:UALAQ.OB - News), from halting the contributions.
The Pension Benefit Guaranty Corp. says the United plans are underfunded to the tune of $8.3 billion.
Unions representing the airline's machinists and flight attendants, in court filings, have also objected to the provision in United's latest bankruptcy financing agreement, which prohibits pension contributions while the airline is in Chapter 11 bankruptcy protection from its creditors.
Chao said the independent fiduciary was authorized to review the funding policy of United's pensions, assert claims and, if necessary, bring litigation on behalf of the plans.
