Pensions

[Albatroz]

Question:
If in the future, consolidation of the airline industry happens, and CO is bought by another airline - and disappears as a business identity - such as UA, (just using UA as an example), that no longer has pension plans, would CO employees loose their pensions? What about if it is the other way around, CO buys UA, would UA employees get their pension back? That pension would be based on what? Their seniority under CO and years of service remaining, or will it include time with UA?
It seems that from a management point of view, to maximize share holder value by negotiating a large hold in the new organization, selling into another airline with no pensions will be a sure way of cutting costs without going through bankruptcy.
Can they do that legally? What do CO labor agreements, such as the pilots, say about that?
Does anyone know?
If this is the case, airlines with employees with pensions, (such as CO and AA), which have managed to stay out of bankruptcy can become targets for acquisition by airlines now in Chapter 11 if they manage to reorganize successfully and dump their pension plans.
I will not put it past management, under the guise of serving the share holder first, to pull a fast one like that.
I certainly hope that the law does not allow a company, by selling itself to another; to be able do away with their obligations towards their workforce

 

[nbmcg01]

I can tell you what happened with my TWA pension. Our pension was "given" to the PBGC after several years of being frozen. When AA acquired the assets (employees) of TWA, we retained our former pension and started acquiring time under the AA defined benefit plan. Many of the AA f/as were up in arms because they thought we were getting "their" pension and would add to the cost od the plan (given our TWA seniority). In reality we only have one year of AA pension because we became furlough fodder in 2003. Hope this answers your concerns and questions.

 

[featheroleather]

Another proud moment for the IAM .

 

[WorldTraveler]

still having a pension will be a liability to being acquired, esp. if the company chooses not to take the pension extension provisions - if they allow a choice. On the other hand, not having a pension will make a company a more attractive takeover target. But pensions are hardly the only factor so don't get too excited one way or the other. Although the industry is picking up the pace of change, it is still not stable.

 

[luvthe9]

Your pension will be gone regardless of what happens. wake up and look around at the industry. Save now it will be gone!!!!!!!!