Bankruptcy Judge Rules Against United
The Associated Press - Friday, September 24, 2004
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CHICAGO
A federal bankruptcy judge ruled against United Airlines on Friday in a procedural dispute, siding with unions who said the company submitted unsubstantiated factual claims about how employees would be affected if their pension programs were terminated.
Judge Eugene Wedoff granted an emergency motion filed by United's machinists and flight attendants, striking from the record a 107-page document which parent company UAL Corp. filed with the court late Thursday.
The ruling does not derail United's controversial bid to shed its pension obligations but underscores that eliminating them will not be achieved without a legal battle.
The unions had key backing in their emergency motion from the Pension Benefit Guaranty Corp., the government agency that would have to take on billions of dollars in obligations if United terminates the pensions.
In the filing, United said its pension plans are in far better financial condition than previously estimated and that the impact of terminating them would be less than initially feared. It said its four pension plans are underfunded by $2.7 billion, as opposed to the $8.3 billion estimated by the pension agency.
The government agency strongly objected to the United filing, telling the court it was "procedurally improper, gives potentially opposing parties no realistic opportunity to respond and serves no legitimate purpose."
Wedoff agreed with that reasoning at a hearing Friday morning.
United spokeswoman Jean Medina said the company was disappointed.
"We still believe the information is important for all of our employees and retirees and other stakeholders," she said. "We will continue to make the information briefs available."
United's pilots, who would take by far the biggest hit if pensions are eliminated, had joined the other employee groups in assailing the filing.
"No amount of self-serving sugarcoating by the company's lawyers can mask the plain fact that ... the immediate impact on thousands of individual retired and active pilots will be devastating," the Air Line Pilots Association said late Thursday.
___
On the Net:
www.united.com
The Associated Press - Friday, September 24, 2004
· advertisement ·
CHICAGO
A federal bankruptcy judge ruled against United Airlines on Friday in a procedural dispute, siding with unions who said the company submitted unsubstantiated factual claims about how employees would be affected if their pension programs were terminated.
Judge Eugene Wedoff granted an emergency motion filed by United's machinists and flight attendants, striking from the record a 107-page document which parent company UAL Corp. filed with the court late Thursday.
The ruling does not derail United's controversial bid to shed its pension obligations but underscores that eliminating them will not be achieved without a legal battle.
The unions had key backing in their emergency motion from the Pension Benefit Guaranty Corp., the government agency that would have to take on billions of dollars in obligations if United terminates the pensions.
In the filing, United said its pension plans are in far better financial condition than previously estimated and that the impact of terminating them would be less than initially feared. It said its four pension plans are underfunded by $2.7 billion, as opposed to the $8.3 billion estimated by the pension agency.
The government agency strongly objected to the United filing, telling the court it was "procedurally improper, gives potentially opposing parties no realistic opportunity to respond and serves no legitimate purpose."
Wedoff agreed with that reasoning at a hearing Friday morning.
United spokeswoman Jean Medina said the company was disappointed.
"We still believe the information is important for all of our employees and retirees and other stakeholders," she said. "We will continue to make the information briefs available."
United's pilots, who would take by far the biggest hit if pensions are eliminated, had joined the other employee groups in assailing the filing.
"No amount of self-serving sugarcoating by the company's lawyers can mask the plain fact that ... the immediate impact on thousands of individual retired and active pilots will be devastating," the Air Line Pilots Association said late Thursday.
___
On the Net:
www.united.com
Good luck to you all and now maybe the BK judge has seen the TRUE COLORS of UniTED's INEPT management!!! 
If you don't get rid of them there will be no hope, just like USAIR!
