eek.
bushman
- Joined
- Sep 22, 2004
- Messages
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IMO the car manufacturers won't be far behind them...
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<TABLE cellSpacing=0 cellPadding=0 width=629 border=0><TBODY><TR><TD colSpan=3>United to terminate pension plans
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United filed for protection from creditors in December 2002
</TD></TR></TBODY></TABLE><!-- E IIMA -->A US bankruptcy judge has approved plans by United Airlines to terminate its employees' pension plans.
The troubled US carrier said it would save about $645m (£343m) a year, in what would become America's largest corporate pension default.
United plans to transfer responsibility for its four defined-benefit plans to the US government's pension agency.
The company said the move was crucial for its survival, but unions described it as a "devastating blow".
Employees could lose thousands of dollars a year from their pensions when they are assumed by the US Pension Benefit Guaranty Corp.
'Unfortunate choices'
United filed for protection from creditors in December 2002. It says it needs to save $725m in labour costs.
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Thousands of retirees will be severely impacted by the ruling
IAMAW union
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Judge Eugene Wedoff, of the Northern District of Illinois Bankruptcy Court, ruled that United had met the necessary legal tests to terminate the pensions.
He said the action involved "choosing the least bad of the unfortunate choices".
Some 120,000 current and retired United employees are covered by the pensions.
The cash-strapped airline's pensions are thought to be underfunded by nearly $9.8bn, however the government has said it will only guarantee about $5bn of that sum.
Strike treat
"Thousands of retirees will be severely impacted by the ruling," said a spokesman for the International Association of Machinists and Aerospace Workers (IAMAW).
"They have already seen their retirement medical costs skyrocket because of United's bankruptcy...and now will have reduced pensions. It's a devastating blow."
Workers have vowed to strike if their pensions are terminated.
But Jake Brace, United's chief financial officer, said the company was doing what was necessary for its long-term survival. "The judge ruled that we did not violate the contract, so we did not violate the law and they (the unions) have no right to strike," he said. In January, pilots and flight attendants at United agreed to accept pay cuts worth $310m a year to help the carrier emerge from bankruptcy protection.<!-- E BO -->
http://news.bbc.co.uk/1/hi/business/4535403.stm
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<TABLE cellSpacing=0 cellPadding=0 width=629 border=0><TBODY><TR><TD colSpan=3>United to terminate pension plans
</TD></TR><TR><TD vAlign=top width=416><!-- S BO --><!-- S IIMA --><TABLE cellSpacing=0 cellPadding=0 width=203 align=right border=0><TBODY><TR><TD>
</TD></TR></TBODY></TABLE><!-- E IIMA -->A US bankruptcy judge has approved plans by United Airlines to terminate its employees' pension plans.
The troubled US carrier said it would save about $645m (£343m) a year, in what would become America's largest corporate pension default.
United plans to transfer responsibility for its four defined-benefit plans to the US government's pension agency.
The company said the move was crucial for its survival, but unions described it as a "devastating blow".
Employees could lose thousands of dollars a year from their pensions when they are assumed by the US Pension Benefit Guaranty Corp.
'Unfortunate choices'
United filed for protection from creditors in December 2002. It says it needs to save $725m in labour costs.
<!-- S IBOX --><TABLE cellSpacing=0 cellPadding=0 width=208 align=right border=0><TBODY><TR><TD width=5>
IAMAW union
</TD></TR></TBODY></TABLE><!-- E IBOX -->
Judge Eugene Wedoff, of the Northern District of Illinois Bankruptcy Court, ruled that United had met the necessary legal tests to terminate the pensions.
He said the action involved "choosing the least bad of the unfortunate choices".
Some 120,000 current and retired United employees are covered by the pensions.
The cash-strapped airline's pensions are thought to be underfunded by nearly $9.8bn, however the government has said it will only guarantee about $5bn of that sum.
Strike treat
"Thousands of retirees will be severely impacted by the ruling," said a spokesman for the International Association of Machinists and Aerospace Workers (IAMAW).
"They have already seen their retirement medical costs skyrocket because of United's bankruptcy...and now will have reduced pensions. It's a devastating blow."
Workers have vowed to strike if their pensions are terminated.
But Jake Brace, United's chief financial officer, said the company was doing what was necessary for its long-term survival. "The judge ruled that we did not violate the contract, so we did not violate the law and they (the unions) have no right to strike," he said. In January, pilots and flight attendants at United agreed to accept pay cuts worth $310m a year to help the carrier emerge from bankruptcy protection.<!-- E BO -->
http://news.bbc.co.uk/1/hi/business/4535403.stm
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