Sept. 25, 2004 - 21:28 MDT

THE WONDERING JEW

How'll It End ?

Things whip along at a snail's pace, a slow one at that it seems. An article in today's Rocky Mountain News by Dave Carpenter of the Associated Press, quoted here in part:

United unions win skirmish over pensions

Judge sides with workers, strikes UAL court filing

"CHICAGO -- A federal bankruptcy judge ruled against United Airlines on Friday in a procedural dispute, siding with unions who said the company filed unsubstantiated claims aout how employees would be affected if their pension programs were terminated."

"While it won't halt United's controversial bid to shed its pension obligations, the ruling suggests that parent company UAL Corp. may have a rough time winning court approval to eliminate the programs."

"Judge Eugene Wedoff granted an emergency motion filed by United's machinists and flight attendants, striking Thursday's 91-page filing from the record."

"In the filing, United said its four pension plans are in far better financial shape than previously estimated and that the impact of ending them would be less than initially feared. It said the plans are underfunded by $ 2.7 billion, as opposed to the $ 8.3 billion estimated by the Pension Benefit Guaranty Corp."

"The unions' motion had key backing from the PBGC, a quasi-federal agency which would have to make good on billions of dollars in retirement benefits owed to United workers and ex-workers if the airline succeeds in terminating the plans. The agency strongly objected to the filing, telling the court it was "procedurally improper, gives potentially opposing parties no realistic opportunity to respond and serves no legitimate purpose." Wedoff agreed with that reasoning at a hearing Friday morning."

"Faced with $ 4.1 billion in obligations to its existing pension program over the next five years, United wants instead to create a defined-benefit plan to which it would contribute a percentage of employee's salary."

"Like other major U.S. airlines, the Chicago-based carrier is struggling with a worsening slump because of soaring fuel prices and stiffer competition from discount carriers.

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I wonder about United, who has been running its "express" planes by way of a business arrangement with Air Wisconsin. Is United playing both sides of the board ? And recently they have come up with their own "TED" planes which will accomplish the discount type flights with their own United aircraft.

Just a thought, it might be cheaper using taxpayer dollars to bail United out rather than PBGC paying retirees ? However, in my mind if that sort of thing could be done I think United should be overseen by our government so that profits go where they are supposed to go.

From what I have read PGBC will only be obligated to a certain percentage on paying out pensions and pensioners will be left grubbing in the dirt for the rest of what they were promised. United's employees have made concession after concession for a number of years to United -- and it hasn't seemed to help a bit.

And this bit, "Defined benefit plan to which it would contribute a percentage of employee's salary," heh - - - - I would like to know what the contractural arrangements are, how are the pensions determined now that United wants to be free from ?

Some measure of control by government until the airlines all get on an even keel, I think would be wise, but maybe otherwise - the way our government is going at the moment.

United is not the only airline suffering nor is it the only business endeavor in our country in deep doo-doo.

Looks to me that the big boys want to put us working stiffs back into the 1890's once more. Promises, promises backed by what I think is previous mismanagement from high places, and Mother Hubbards cupboard is going bare, bare, bare.

I guess the big money boys are still offering to help United, if United stabs employees in the back and fails to keep its promises.

To my mind, if United is successful in terminating pension plans, then most other biggies will follow suit - - - - - seems logical to me. By golly Ma, if Jimmy does it, why can't I ?

So this Wondering Jew wants to know How'll It End ? . . . . . . . . . . . . .

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