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On 1/21/2003 1:33:38 AM chipmunn wrote:
The Company would like ALPA to voluntarily terminate its pension, but ALPA spokeman Roy Freundlich told the Pittsburgh Post-Gazzette the union would not agree to additional concessions. In addition, it appears the PBGC will not terminate the plan as well.
Therefore, I believe the only option for US Airways to rid itself of this obligation is for the Company to file a S.1113 motion to cancel the pilot retirement plan. If the court agrees to change the collective bargaining agreement, ALPA is free to strike, which is being discussed within the pilot group and the Strike Preparedness Committee.
Meanwhile, the Company has told ALPA it will not negotiate a replacement plan unless the pilots voluntarily terminate the pension plan. This approach is unacceptable to ALPA.
The MEC will not terminate the plan and then bet on something to come later.
Again, I believe it is in the company's best interest to obtain a legislative solution to this problem.
Chip
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Chip,
Well, that answers part of the question. However, the original question goes to the operation of Section 1113©.
Let me restate it. It is my understanding that under 1113, the Company can only seek to void the ENTIRE working agreement, not just individual pieces. Thus, for the Company to void the pension, it must void the ENTIRE contract.
Now I realize that the Company will likely just impose the contract ALPA ratify minus the pension, but working under an imposed contract (which is subject to further changes at the Company's will) does carry some additional risks.
You say that the PBGC will not distress terminate the pilot pension plan. That is not my take on their statements to date. If the pension is underfunded and they won't approve US's refunding plan, what exactly do they want US to do?
Thanks for your response.
Andy S.