Ual Expects To Cancel Pension Plans

[jimntx]

you can bet your sweet a$$ that the top 40 or 50 vp's and their a$$ kisser's pension will stay intact. its the same crap at all airlines soon!

[post="170855"][/post]​

Amen, don't forget that the SERP (Special Executive Retirement Plan) at AMR that cost Don Carty his job is still intact for all executives named in it. Just because the employees found out about it did not mean that the Board of Directors terminated it.

 

[The Ronin]

http://www.forbes.com/facesinthenews/2004/...yahoo&referrer=

Glad to see the "exec's" still have a sense of humor

 

[UAL_TECH]

FYI,

Our Pensions, Our Union, What’s Next?

What’s next?

Any one or all of these options could be negotiated into our contract following the freeze or termination of the current defined benefit plan. Or we could create through AMFA a single or multi-employer defined contribution plan. YOU will make any decision regarding future pension plans. The final decision will be yours. There will be a membership vote.

The current reality in the United States is that defined benefit plans are not the bright shining stars they once were. The truly tragic issue is that we have no control over what UAL will do in regards to termination of the plans. This consequence stems from poor management.

Even during this crisis of leadership and assault on our future, we are still doing our jobs in a professional and safe manner. However, this does not mean you must be silent.

The Local 9 leadership encourages you to voice your concerns on the floor, to upper management, to the Board of Directors, and to the government.

In the coming weeks AMFA National will publish additional details for us to consider. Local 9 will also report on outcomes and possibilities, so that when the time comes you can make informed decisions.

Joseph Prisco is Local 9 President.

B) UT

 

[The Ronin]

Just like we got to vote on 74-1m....f*ck AMFA and f*ck unions in general...."you" don't get to pick sh*t....since we're all not in the same boat, how do you figure "you" get to pick anything...I have voted against "everything" at UAL....but it all seems to pass even though everyone you talk to says they voted no also....all BS to me

 

[WorldTraveler]

The real question is, Is a DB pension realistic in this day and age? Of course the conventional business community wisdom would say no. But I can't help but wonder if all workers across many industries and employers would take ACTION to stop the erosion of things like pensions, if maybe the answer would be different. Sure Joe Blow may have to pay $31 instead of $29 for his transcon ticket but if we were all a bit more unified (hello jetBlue, Delta, and Southwest F/As, none of whom have DB pensions-- and, except for DL, that would include pilots as well) maybe things would be different.

But maybe I am just dreaming...

[post="170722"][/post]​

Bear96,
No, you really aren't dreaming but its probably not attainable as long as the US government leaves just about everything to market forces. If the government said that all employers had to provide some level of health care and retirement benefits, then it would be an equal playing field for all or charge higher taxes to those companies that choose not to provide coverage which ultimately the government will have to pay. Clearly, however, companies like Wal-Mart are rewarded in the marketplace in part because they treat their employees so bad. There will be a kinder, gentler world sooner or later....

 

[UAL_TECH]

Just like we got to vote on 74-1m....f*ck AMFA and f*ck unions in general...."you" don't get to pick sh*t....since we're all not in the same boat, how do you figure "you" get to pick anything...I have voted against "everything" at UAL....but it all seems to pass even though everyone you talk to says they voted no also....all BS to me

[post="170922"][/post]​

Ronin, at least you’re consistent …..but I don’t know of many people whom have not said this at one time or another.

But to lighten things up a bit, here’s some more Humor:


Department of Labor - Agreement with United Airlines to Appoint Independent Fiduciary

-and-

United removed pension execs (Chicago Tribune - Subscription Required)

"When the fiduciaries saw the potential for a conflict of interest, given their role as part of senior management, they believed it was proper to resign" as members of the pension plans' administrative committee, Medina said.

The committee comprised Chief Financial Officer Jake Brace, Chief Operating Officer Peter McDonald and Senior Vice President-People Sara Fields.

Medina said it is common for a company to serve as both sponsor of its pension plans and the sole fiduciary for those plans.

Now United is searching for an independent fiduciary. It must be approved by the Labor Department and needs to be in place before Sept. 15, when United is scheduled to make a payment of $400 million to its pension funds. It missed a payment of $72 million on July 15.

Wonder who United will ‘appoint’ next?

Take Care,
UT

 

[The Ronin]

Judge OKs United Amended Financing Plan
12 minutes ago
By MIKE COLIAS, AP Business Writer
A United Airlines passenger jet leaves the gate area of Chicago's O'Hare ...More...

CHICAGO - A federal bankruptcy judge approved United Airlines' amended financing plan Friday, rejecting union arguments that United didn't try hard enough to come up with an alternative that would continue company contributions to employee pension funds.

The hearing came a day after the release of court papers in which United warned it likely will have to terminate those pension funds in order to secure the loans it needs to emerge from Chapter 11 bankruptcy.

Such a default by the nation's second largest airline would affect about 119,000 employees and retirees and be the largest ever by a U.S. company.

U.S. Bankruptcy Judge Eugene Wedoff approved United's amended financing plan, which would give the airline an additional $500 million and allow it an additional six months to pay it off, through June 2005.

The judge also approved a 30-day extension for United to work on its restructuring plan with its creditors and unions before it would lose its exclusivity, which would open the process up to other outside parties.

"It's very clear that the proposed financing does not prohibit contributions" to United's pension plan, Wedoff said in approving the financing plan. He said the plan improves United's chances of getting out of bankruptcy, which is in the best interest of employees and retirees.

Wedoff also granted United an injunction preventing the International Association of Machinists and Aerospace Workers from suing the airline's top three executives in U.S. District Court, saying the issue belongs in bankruptcy court instead.

The judge made no ruling on whether or not it would be legal for United to terminate its pension funds or stop its required pension fund payments.

United chief financial officer Jake Brace said Friday that the company had no timeline for deciding whether it would terminate the pension funds or a timeline for when it might emerge from bankruptcy.

"We're very concerned about the effect on our employees," Brace said. "We understand that if we had to go the termination route, it would be a very very difficult step."

Machinists union spokesman Joseph Tiberi said the judge left the unions with no choice but to cooperate with United.

"Now we need to work together to find a less drastic answer to the pension problem," he said.

In July, United deferred a required quarterly pension fund payment of $72 million, characterizing it as a "huge financial burden" and saying it planned no further payments while in bankruptcy. The IAM, representing more than 20,000 ramp workers and customer-service agents at United, and the Association of Flight Attendants filed court objections to the financing plan and its decision to stop pension fund payments.

Robert Clayman, an attorney for the Association of Flight Attendants, argued that United never considered less drastic options that stopping payments.

"Out of the box, the only plan they presented to potential lenders was benefit termination," Clayman told the judge.

United Airlines attorney James Sprayregen countered that federal bankruptcy laws trump employee benefit rules that require companies to make regular contributions to their pension plans. He also argued that United would be within its legal rights if it decided to terminate the plans.

Under the amended plan, Sprayregen said, "United can make the pension fund payments if United's cash flow can support it."

In its 26-page bankruptcy court filing released Thursday, Elk Grove Village-based United cited "stark" financial conditions and the need to maintain liquidity and cash flow to get the financing to emerge from Chapter 11 in saying it "likely" would have to terminate the pension funds.

United faces half a billion dollars in pension contributions in the next two months and $4.1 billion by the end of 2008. The government recently rejected its bid for a $1.6 billion loan guarantee, and rising jet fuel prices are expected to cost it $1 billion more this year than expected.

"Given the magnitude of further cost reductions needed to create a viable business plan and attract exit financing, termination and replacement of all our defined benefit pension plans likely will be required," the airline said in the filing.

Dozens of United retirees sat in the courtroom Friday, many wearing T-shirts reading: "Pensions are promises that cannot be broken."

Shirley Telegdy, who retired three years ago after 37 years as a United customer service representative, said before the hearing that she relies on her pension payment for most of her income.

"I thought I could enjoy retirement at 62," she said. "Now I have to give up everything."

Since United entered bankruptcy in December 2002, employees have been dealt steep wage and benefit cuts as the airline has restructured.

United's pension plans are now underfunded by about $8.3 billion. If the company scraps the funds, the government-funded Pension Benefit Guaranty Corp. would be expected to take responsibility for up to $6.4 billion.

___

Ahhh.....shucks (says the IAM),...guess we gonna have to work with them now...(and still get our dues, heheheheh)