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Apr 10, 2003
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Bankruptcy Judge Rules Against United

The Associated Press - Friday, September 24, 2004
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CHICAGO

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

Judge Eugene Wedoff granted an emergency motion filed by United's machinists and flight attendants, striking from the record a 107-page document which parent company UAL Corp. filed with the court late Thursday.

The ruling does not derail United's controversial bid to shed its pension obligations but underscores that eliminating them will not be achieved without a legal battle.

The unions had key backing in their emergency motion from the Pension Benefit Guaranty Corp., the government agency that would have to take on billions of dollars in obligations if United terminates the pensions.

In the filing, United said its pension plans are in far better financial condition than previously estimated and that the impact of terminating them would be less than initially feared. It said its four pension plans are underfunded by $2.7 billion, as opposed to the $8.3 billion estimated by the pension agency.

The government agency strongly objected to the United 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.

United spokeswoman Jean Medina said the company was disappointed.

"We still believe the information is important for all of our employees and retirees and other stakeholders," she said. "We will continue to make the information briefs available."

United's pilots, who would take by far the biggest hit if pensions are eliminated, had joined the other employee groups in assailing the filing.

"No amount of self-serving sugarcoating by the company's lawyers can mask the plain fact that ... the immediate impact on thousands of individual retired and active pilots will be devastating," the Air Line Pilots Association said late Thursday.

___

On the Net:

www.united.com
 
Well, one bright spot for the employees. At least it indicates that the company will have to be totally honest and upfront in its arguments before the court if it wants to dump the pension plans.
 
I hope the court keeps UA funding those pensions. Maybe not the full amount, but at least 50%. Just my thoughts......
 
jimntx said:
Well, one bright spot for the employees. At least it indicates that the company will have to be totally honest and upfront in its arguments before the court if it wants to dump the pension plans.
[post="184049"][/post]​

I think the trick will be United being totally honest and upfront with employees...could be a stretch, an event that hasn't been practiced in a score or so...
 
Finally some good news for the hard working employees at UAL, congrats!

In the filing, United said its pension plans are in far better financial condition than previously estimated and that the impact of terminating them would be less than initially feared. It said its four pension plans are underfunded by $2.7 billion, as opposed to the $8.3 billion estimated by the pension agency.

Who balances these guys books? This is appauling to lead the work force, the PBGC, investors, and customers to beleive that the 8.3B amount was real! So now, UniTED management what's really the truth, 2.7B or 8.3B??? Or has it been a scam all this time to steal even more money (massive lay-offs, conccesions & ESOP) from the people that make UAL happen everyday?

I think a linch mob should be in order myself! :shock: Good luck to you all and now maybe the BK judge has seen the TRUE COLORS of UniTED's INEPT management!!! :up: If you don't get rid of them there will be no hope, just like USAIR!
 

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