Judge Approves Termination of United Airlines Pension Plans
By Paul Meincke
United's flight attendants felt betrayed Tuesday, after a federal bankruptcy judge approved a company plan that will cut their pension benefits drastically, but not the pensions of their bosses.
"Our CEO has a $4 million protected pension benefit, and then he wants us to go out on the frontline tomorrow and serve the customers so that he can collect his bonuses and his paycheck," said Diane Tamuk, United flight attendant
"We are only making the changes in this company needed to be successful in the long term and no others," said Jake Brace, United financial chief.
"It's just mind-boggling how this could've happened," said Tamuk.
United is turning over its $10 billion pension obligation to a federal agency that only guarantees half of that amount. The plan saves the company $600 million a year, a major step in climbing out of bankruptcy.
According to Judge Eugene Wedoff, who says "bankruptcy is choosing the least bad among a number of unfortunate choices. It keeps employees working and the airline operating." But the flight attendants may be striking instead of working, even though the company says a walkout is illegal based on the judge's ruling.
"The flight attendant contract remains in place as we stand here today, and we believe they have absolutely no right to strike," said Brace.
"We will not work under conditions that we have not agreed to. Either they go or we go," said Greg Davidowitch, flight attendants' lawyer.
This dramatic bankruptcy case, with its enormous financial and personal implications, is back in court Wednesday as United argues for changes in all of its union contracts to effectuate even more savings and keep the company afloat.
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