Newsstand - UNITED AIRLINES: Plans to eliminate employee pension plans going ahead

http://www.chicagotribune.com/business/chi-0504170204apr17,1,1705924.story?coll=chi-business-hed&ctrack=1&cset=true

http://www.reuters.com/newsArticle.jhtml?type=domesticNews&storyID=8270366

CHICAGO (Reuters) - Bankrupt United Airlines reached an agreement with U.S. pension insurers on Friday to terminate four employee retirement plans which are underfunded by nearly $10 billion.

Seattle Times - http://seattletimes.nwsource.com/APWires/business/D89KNI600.html

Not to be rude, or anything....but it is about time!! There is no way they are going to survive with these pensions as a liability.

On the other hand, doesn't it open the door to every other airline wanting to get rid of their pension plan? If I was Delta or CO or NW or anyone else, why should they have to continue to fund their plans (not exactly chump change) when other airlines like United get off not paying it.

Jeff

Noting that the Machinists strike authorization vote begins next week, he added: "It is important that United Airlines, its creditors and the public understand that if pension and other issues are not resolved to our members' satisfaction, we are prepared to strike United Airlines."

:eek: Summer of Hell II: Coming soon to an airport near you?

Considering that in 2000, UA was making a billion a year, instead of losing it....

It's all hot air. I don't believe there are thousands of mechanic jobs readily available in the same city the machinists are in right now. So if they're lucky, they can find a job in another area with a military, cargo, or charter company (since I don't see AA, DL, CO, NW, and US adding thousands of positions) and are they going to want to uproot their families?

On the other hand, doesn't it open the door to every other airline wanting to get rid of their pension plan?

Maybe not. DL and AA are trying to get a bill through Congress that would let them spread out upcoming pension payments for 25 years. If they can get this through, maybe along with some relief on fuel costs, hopefully they will both stay out of chapter 11. Pity this wasn't up for discussion prior to UA going into chapter 11 some 29 months back.

Summer of Hell II: Coming soon to an airport near you?

I wonder if there's a marked decrease in UA bookings when these union statements come out about strikes? Guess the next major court date isn't until mid-May to see what plays out next.

It's all hot air.

I wish I could put money on that :) I left UA as my primary carrier when the mechanics were going to strike 3 years back, and they were even more vocal back then. I just wouldn't put it past them as this point to take some type of action if the bankruptcy judge jettisons their pensions.

This is from the Rocky Mountain News today:

Some pilots have qualified for annual pension payments from United totaling more than $100,000 a year but could see that reduced by more than 60 percent.

A 42-year-old flight attendant who's been with the carrier for 19 years and expects to retire at age 56 would be left with 31 percent of an expected pension.

"It's just a royal hose job any way you slice it," said Rich Ford, a 59-year-old United captain in Denver.

In a prepared statement, the International Association of Machinists, which represents nearly 30,000 active and retired United baggage handlers and customer service agents, said it would not tolerate losses in members' earned pension benefits.

"If pension and other issues are not resolved to our members' satisfaction, we are prepared to strike United Airlines," said IAM General Chairman Randy Canale.

"We will use every available and legal means to fight this," said Sara Dela Cruz, spokeswoman for the Association of Flight Attendants.

Rocky Mountain News link (http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_3723033,00.html)

In 2000, the gun was against UA management's temple.

In 2005, it is now against UA labor's temple.

Management didn't want to die, so they blinked.

I doubt labor wants to die, so they will (continue to) blink.

UA has been in C11 for 30 months now. I doubt it even enters most passenger's mind when they book a ticket. All they care is that UA is as cheap as - or cheaper then - everyone else. So talks of striking mean nothing, especially since the last strike at UA was some five years ago.

I'll fly them till they chain the planes to the gates because of Economy Plus. Everything else that is positive about them and their service to me is just a plus.

[QUOTE=
In a prepared statement, the International Association of Machinists, which represents nearly 30,000 active and retired United baggage handlers and customer service agents, said it would not tolerate losses in members' earned pension benefits.

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???? retirees.....The IAM represents active employees....this useless union has done nothing to help job security or maintain wages and I can guarantee they will endorse/propose anything United wants while talking out of the other side of their mouths that they "represent" us.....U S E L E S S.

Well it's a win-win for IAM Management.

They get to scream bloody murder about how the PBGC taking over UA's pensions will "gut" them, yet when other airlines that waited too long to get PBGC to cover their pensions and just ends them, IAM will get to say "See how brilliant we are? You may not be making as much in pensions, but thank's to our hard work, you still get something!" :rolleyes:

http://www.nytimes.com/2005/04/27/business/27pension.html

The federal agency that insures pensions could receive United Airlines securities worth $1 billion or more when the airline emerges from bankruptcy, according to a settlement agreement prepared for filing in federal bankruptcy court.