6/23/2004 POSTED
United Airlines announced that it would not make any further payments to its employee pension plans while in bankruptcy. Furthermore, the airlines is considering termination its current pension plans and developing replacement plans.
Financing is not the only ingredient to surving bankruptcy. A productive relationship with employees is necessary, but that no longer exists at United Airlines.
Unlike the representatives for United's Mechanic & related workers, the Machinissts Union does not believe United's survival depends on gutting pension plans. IAM representives have been meeting for weeks with our labor, bankruptcy and pension attorneys to prepare a defense against Uniteds expected effort to terminate our pension. plans. We will not simply allow United to proceed without a fight.
Additionally, International, District and Local IAM representatives have met officials form the Pension Benifit Guarantee Corp.(PBGC) to discuss the possible termination of plans and its effect on our members. The PBGC is the fereral agency that insures defined benefit pension benefits for 44 million American Workers.
