Judge Approves End of United Pension Plan

mpenguin1

mpenguin1

Well-Known Member
A federal bankruptcy judge approved United Airlines' plan to terminate its employees' pension plans on Tuesday, clearing the way for the largest corporate-pension default in American history.

Jack Carriglio, an attorney for retired United pilots, said the airline should be ashamed of the agreement and warned of the consequences among angry employees.

"A strike is a real prospect if that agreement is approved," he said. "Also, this will have a grave impact on United employees' morale."

United's controversial move risks provoking action by employees who already have agreed to sharp cuts. Unions have raised the possibility of striking if United terminates the pensions and has its labor contracts overhauled.

http://news.yahoo.com/s/ap/united_airlines
 
United should be ashamed ...

the judge should be ashamed ...

... and I support all United employees to find work elsewhere and leave as soon as possible to leave management with no one to fly the planes, load the bags, load the pax, or pass out tickets!
 
Who is next? Big D, perhaps? j/k- it is just becoming a routine thing these days-
 
A sad reality. My parents had to sell their house and relocate from San Diego to Washington state because my dad lost his US Airways pension. On my flight up to visit them this weekend I met a United 747 FO who is 5 years from retirement and was afraid this would happen.
 
[ QUOTE ]
United should be ashamed ...

the judge should be ashamed ...

... and I support all United employees to find work elsewhere and leave as soon as possible to leave management with no one to fly the planes, load the bags, load the pax, or pass out tickets!

[/ QUOTE ]

Yup, but unfortunately, if there are people willing to do PFT/PFJ, then there are surely people out there willing to work fo next to nothing for the "privledge" of being a United FO.
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[ QUOTE ]
United should be ashamed ...

the judge should be ashamed ...

... and I support all United employees to find work elsewhere and leave as soon as possible to leave management with no one to fly the planes, load the bags, load the pax, or pass out tickets!

[/ QUOTE ]

yeahthat.gif
 
This is a disgrace. I am ashamed to have flown on that carrier. That judge has no idea what he just did to those people.
 
Sad but true. I've been fighting the "Hell, I won't only do it for cheap, I'll do it for FREE yuk yuk yuk" mentality for years to no avail.
 
How many of you out there remember Polaroid? Their retiree's recently all received a whopping $47 ($35 after taxes) as their final payment from Polaroid's pension plan. Such as shame but the reality nowadays is that no company out there will always be around for their employees. If you believe otherwise you're a fool.
 
Question:

Is there any way that this could be reversed? Say, if UAL were able to get itself out of chapter 11 a few years down the road, then could they assume responsibility for honoring their pensions? This is very disheartening to me, and I feel for all United employees.
 
Sadly, I think this might have been the only way management could keep United afloat. If United had gone under with the pension intact, what would happen to it? I'm pretty sure the creditors wouldn't let it stay in one piece if it were up to them. I wish there had been more time to work out a transtition to a 401K or similar type plan.

Not saying that I'm against it, but can the employees even LEGALLY strike? If a judge approved it, then it's sorta cut and dry. There's no saying that United violated their contract since they went through the proper (if crooked) channels.
 
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How many of you out there remember Polaroid? Their retiree's recently all received a whopping $47 ($35 after taxes) as their final payment from Polaroid's pension plan. Such as shame but the reality nowadays is that no company out there will always be around for their employees. If you believe otherwise you're a fool.

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At least the UA guys aren't getting hit with a Brannif type collapse. That's some consolation, I guess.



These days, I wouldn't want to have any of my retirement in a company pension.

I can manage my investments just fine, and the company officials can keep their incompetent hands off. Don't even get me started on the whole Soc. Security mess.
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Not saying that I'm against it, but can the employees even LEGALLY strike? If a judge approved it, then it's sorta cut and dry. There's no saying that United violated their contract since they went through the proper (if crooked) channels.


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The judge is an appointed position, appointed by an elected official. Or in other cases the judges must be elected outright. There is a way to strike against this, judicially and on the picket lines. As for those ways in our government, I do not know how those work. Someone smarter then I am sure does.
 
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Sadly, I think this might have been the only way management could keep United afloat. If United had gone under with the pension intact, what would happen to it? I'm pretty sure the creditors wouldn't let it stay in one piece if it were up to them. I wish there had been more time to work out a transtition to a 401K or similar type plan.

Not saying that I'm against it, but can the employees even LEGALLY strike? If a judge approved it, then it's sorta cut and dry. There's no saying that United violated their contract since they went through the proper (if crooked) channels.

[/ QUOTE ]

Legally Strike? Who knows, but just maybe they may start working a little slower. You know the unofficial work slowdown.
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:smirk

I wonder how many of them will do that knowing full, well that htey may be cutting their own throats. I suppose they think if the company is going to screw me, then I'll screw them.

It will indeed be very interesting to see how it plays out.
 
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This is a disgrace. I am ashamed to have flown on that carrier. That judge has no idea what he just did to those people.

[/ QUOTE ]

Of course he does. What part of hopelessly insolvent don't you understand? Even with the pensions going to the PBGC, an agency set up for this express purpose, the airline is well short of the profitability it needs to emerge from bankruptcy. As the judge said: "The least bad of the available choices here has got to be the one that keeps an airline functioning, that keeps employees being paid."

Before airlines tried to operate through bankruptcy and before there was a PBGC, it was just over, shut out the lights, no more paychecks, divide up what was left in the pensions and go on your way. At least in this process they are trying to preserve jobs for the people that want to stay.
 
My thoughts exactly, from another post on a different forum:

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What type of precedent does this set for the rest of corporate America? Have enough financial mismanagement and you can talk your way out of paying loyal employees pension benefits? Granted, a small percentage of companies still offer pensions, however I think the ramifications of this could set a very large precedent for companies in financial trouble, not just in the airline industry

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Don't tell me, let me guess: United's executive pension trust fund is unaffected by this ruling, and will continue in perpetuity.

WHY IS EXECUTIVE COMPENSATION IN AMERICA STILL SKYROCKETING???????
 
It's funny airlines are like human-beings- they die after a life span of 60 or 70. Some of them die at an early age. Most of these legacy airlines will dispaear sooner or later-unfortunately!
 
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