So It's Come To This | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-04.29.24

Airborne-NextGen-04.30.24

Airborne-Unlimited-05.01.24 Airborne-AffordableFlyers--05.02.24

Airborne-Unlimited-05.03.24

Sat, Jul 31, 2004

So It's Come To This

Machinists Sue UAL Over Pensions

It's getting ugly. The controversy brewing between bankrupt United Airlines and its unions over pensions has now spilled over into open court. The Machinists Union is suing the world's number-two carrier for stopping payments to the pension plan.

In the suit, the International Association of Machinists and Aerospace Workers accuses United's top three executives of breaching their fiduciary duty by halting contributions to the pension fund while the airline is in bankruptcy.

News of the suit came as the second part of a one-two punch for United. Even as the lawsuit was being filed, United posted a $247 million loss for the second quarter. That makes it 16 straight quarters United has written the books in red ink.

United's financial continued struggle in bankruptcy court has led to speculation among analysts that it's going to shut down four pension funds. United admits the pension funds are being reviewed, but also acknowledges the threat of terminating the funds has caused "significant agitation" among its employees.

Now, the Machinists are talking tough. "United Airlines must get the message that they cannot abandon employee benefits at will. They will not be allowed to continue their slash-and-burn approach to restructuring without realizing serious consequences," said Machinists District 141 President Randy Canale. He's also a UAL board director who boycotted Thursday's regular meeting because of the rising tensions over the pension fund.

"The Machinists Union believes their actions to be in violation of the pension plans’ funding requirements, IRS regulations and the Employee Retirement Income Security Act (ERISA). Our complaint asks the court to compel funding of the plans," Canale wrote in a letter to members of his local. "On advice of counsel, I am not attending Board of Director discussions regarding pension issues. I will not violate the law for United Airlines.

"Pensions are not a perk the company can just withhold without consequence," he wrote. "Our pensions are deferred compensation earned by our members with decades of hard work and dedicated service to the company.

"United Airlines’ parasitic attempts to restructure by destroying employee wages, benefits and morale will not succeed. By repeatedly attacking their employees and retirees, UAL management has jeopardized the future of the airline," Canale contended in his letter. "Without employee support, this company will not emerge from bankruptcy."


FMI: www.united.com, www.iam141.org

Advertisement

More News

ANN's Daily Aero-Linx (05.02.24)

Aero Linx: Model Aeronautical Association of Australia MAAA clubs are about fun flying, camaraderie and community. For over 75 years, the MAAA has been Australia’s largest fl>[...]

ANN's Daily Aero-Term (05.02.24): Touchdown Zone Lighting

Touchdown Zone Lighting Two rows of transverse light bars located symmetrically about the runway centerline normally at 100 foot intervals. The basic system extends 3,000 feet alon>[...]

Aero-News: Quote of the Day (05.02.24)

“Discovery and innovation are central to our mission at Virgin Galactic. We’re excited to build on our successful record of facilitating scientific experiments in subor>[...]

ANN FAQ: Contributing To Aero-TV

How To Get A Story On Aero-TV News/Feature Programming How do I submit a story idea or lead to Aero-TV? If you would like to submit a story idea or lead, please contact Jim Campbel>[...]

NTSB Final Report: Cirrus Design Corp SR20

Student Pilot Reported That During Rotation, “All Of A Sudden The Back Of The Plane Kicked To The Right..." Analysis: The student pilot reported that during rotation, “>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC