Bankruptcy Court Orders Examiner to Investigate United Airlines | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 03.23.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.27.15

Airborne Hi-Def On YouTube

Airborne 03.23.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.27.15

Mon, Feb 23, 2004

Bankruptcy Court Orders Examiner to Investigate United Airlines

Union: Airline's Attempt to Defraud Thousands of Retirees Out of Medical Benefits Under Scrutiny

Bankruptcy court Judge Eugene Wedoff ruled in support of a motion filed by United Airlines flight attendants, represented by the Association of Flight Attendants-CWA, AFL-CIO, to appoint an examiner to investigate United's plan to change retiree medical benefits for workers who retired before July 1, 2003.

Flight attendants contend United intentionally misled thousands of workers into ending their careers or retiring early, defrauding them out of their retirement benefits. AFA's arguments were supported by the International Association of Machinists and Aircraft Mechanics Fraternal Association in court.

"The employees and retirees who have sacrificed billions of dollars annually to see United succeed deserve to know the extent of management's deception in baiting employees to retire with false promises of secure and reasonably priced medical benefits," said United Master Executive Council President Greg Davidowitch. "We hope that this ruling encourages United management to drop their ill-conceived plan, make good on their agreements with employees, and move forward with the business of the airline."

The court strongly encouraged that the US Trustee appoint an examiner by Feb. 24 and the examiner will be required to report back to the bankruptcy court by March 19. The scope of the investigation aims to determine if United decided to use the bankruptcy code to pursue changes to retiree medical benefits prior to July 1, 2003. This date was significant because United established it as the retirement deadline by which an employee would have to retire to secure medical benefits. United had not notified retirees that it intended to pursue changes to these benefits prior to that date.

Robert Clayman of Guerrieri Edmond and Clayman, Council for AFA said, "This ruling means that the examiner will seek to determine who knew what, and when they knew it."

Judge Wedoff said that there is substantial urgency in resolving this issue because the ultimate success of the airline depends on management and employees effectively working together. To that end, he stated that the appointment of an examiner is "well worth the investment in arriving at a prompt conclusion" to the issue.

United management signed a letter of agreement in May 2003 to ensure that flight attendants retiring before July 1, 2003 would have access to health care benefits that were less costly and more comprehensive than those that would be in place for those who retire after that date. Based on that agreement, over 2,500 flight attendants retired before the July 1 deadline, only to find out just six months later that United intends to double-cross them and cut their benefits. These changes would force retirees to pay hundreds of dollars more per month of their modest pensions just to continue reduced health insurance.

FMI: www.afanet.org, www.unitedafa.org

Advertisement

More News

Airborne 03.27.15: Cockpit Changes Announced, Maine v UAVs, NBAA v Santa Monica

Also: AirVenture Update, Barnstorming Opines On Media Aero-Reporting, NTSB Update, ERAU Scholarships, Doolittle Raiders, Tecnam P2010 The loss of Germanwings Flight 9525 due to wha>[...]

IFALPA Strongly Condemns Leaking Of Germanwings CVR Data

Calls Release Of Early Data A 'Breach Of Trust' The International Federation of Air Line Pilots’ Associations (IFALPA) deplores and condemns the leaking of certain elements o>[...]

Airborne 03.27.15: Cockpit Changes Announced, Maine v UAVs, NBAA v Santa Monica

Also: AirVenture Update, Barnstorming Opines On Media Aero-Reporting, NTSB Update, ERAU Scholarships, Doolittle Raiders, Tecnam P2010 The loss of Germanwings Flight 9525 due to wha>[...]

Airborne 03.26.15: Airbus Crash 'Pilot Induced', B-29 Rollout, CC Rockets Ready

Also: ALPA v UAVs, Aero-Community Update: XPrize, FAA Streamlines UAS COAs, Airport Infrastructure, ATC Reform, New SpaceX Rocket Data retrieved from the Cockpit Voice Recorder (CV>[...]

Summerville, SC Makes Flowertown Festival A UAV No-Fly Zone

Violation Could Land UAV Operator In Jail The town of Summerville, SC has declared its annual Flowertown Festival a no-fly zone for UAVs.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC