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Flight Attendants Appeal Pension End Run
The Association of Flight Attendants-CWA filed a notice of appeal on May 18 to overturn the bankruptcy court's approval of the pact between United Airlines and the Pension Benefit Guarantee Corporation (PBGC) that would terminate the members' defined benefit pension plan.
"United's high-priced lawyers used a cheap procedural maneuver to preempt our rightful day in court to defend our plan under the standards of pension and bankruptcy law," said Greg Davidowitch, president of the AFA United Master Executive Council.
The appeal goes to the U.S. District Court for the Northern District of Illinois.
In what AFA termed "a backroom deal" with the quasi-federal PBGC, United is trying to shift $6.6 billion of its pension liabilities to taxpayers, and the result would be a cut in benefits by up to one-third for flight attendants and other employees.
"United is trying to manipulate the bankruptcy process, plain and simple," AFA-CWA President Pat Friend stated.
Meanwhile, AFA members have been visiting Capital Hill offices and mounting an e-mail campaign to legislators urging support for a bill introduced by Rep. George Miller (D-Calif.) to put a 6-month moratorium on pension plan terminations instituted by the PBGC. The bill is H.R. 2327.
The moratorium would give Congress an opportunity to fully assess the federal pension guarantee system - currently in a shaky position with a $23 billion deficit - while allowing AFA "the opportunity to fight for our day in court," the union said in a statement.
"United's high-priced lawyers used a cheap procedural maneuver to preempt our rightful day in court to defend our plan under the standards of pension and bankruptcy law," said Greg Davidowitch, president of the AFA United Master Executive Council.
The appeal goes to the U.S. District Court for the Northern District of Illinois.
In what AFA termed "a backroom deal" with the quasi-federal PBGC, United is trying to shift $6.6 billion of its pension liabilities to taxpayers, and the result would be a cut in benefits by up to one-third for flight attendants and other employees.
"United is trying to manipulate the bankruptcy process, plain and simple," AFA-CWA President Pat Friend stated.
Meanwhile, AFA members have been visiting Capital Hill offices and mounting an e-mail campaign to legislators urging support for a bill introduced by Rep. George Miller (D-Calif.) to put a 6-month moratorium on pension plan terminations instituted by the PBGC. The bill is H.R. 2327.
The moratorium would give Congress an opportunity to fully assess the federal pension guarantee system - currently in a shaky position with a $23 billion deficit - while allowing AFA "the opportunity to fight for our day in court," the union said in a statement.