Tilton says CBA''s only reduced reduced pension obligations to some extent

[USA320Pilot]

In his weekly recorded message to employees, UA chief executive officer Glenn Tilton yesterday carefully told employees that the new collective bargaining agreements reduced pension obligations to some extent. Clearly, this statement was intended to tell employees that without legislative relief per the Air Line Pension Act of 2003, recently introduced as H.R. 2719, that UA’s underfunded pensions could prevent the carrier from emerging from bankruptcy.

Tilton said that more needs to be done on the legislative front, there was opposition from some important members of Congress to H.R. 2719, and the pension plans are cash liabilities that must be met for the company to successfully emerge from court protection.

As most readers know, a few weeks ago sources close to the UA pension issue told me that similar to OA’s, who have defined benefit retirement plans, the UA ALPA pension plan is a time bomb ready to explode. In fact, Tilton said that decisions will be made as we move further along in the process in our restructuring on how to deal with the retirement plans, which clearly could be UA's biggest hurdle to emerge from bankruptcy.

Also noteworthy, the ATSB said in UA’s last attempt to acquire a loan guarantee that the board had serious concerns regarding the company’s underfunded retirement plans. With yesterday’s news that union concessions only reduced pension obligations to some extent, how will ALPA react if the ATSB says the only way the company can get a loan guarantee is for the union to terminate its Defined Benefit Retirement Plan?


Regardless, I believe UA and US need one another to provide a revenue premium to fight the low cost competitors, but before anything can be done, UA must figure out what to do with its underfunded pension in light of Tilton’s comments at 800-393-6682 (eye-on-ua), prompt 2.

767jetz, by the way, I was just wondering who first broke this story on this website a few weeks ago?

Best regards,

Chip

 

[USA320Pilot]

737nCH11:

737nCH11 said: "Call me naive, but I think this situation will be resolved. Airline management, airline unions, and the AFL-CIO are joining together to address this issue. According to sources they are being well received on Capitol Hill. This is a huge issue which affects many voters, so I believe a quick solution is in the best interests of the politicians. Chip, if the airlines get legislative relief on this am I correct in assuming that the U pilot group will have their pensions restored? That would be a good thing."

Chip answers: I am actively involved with ATA, ALPA, & AFL-CIO efforts to provide a legislative solution to this national and airline industry problem. ALPA is scoring H.R. 2719 and we do not currently have a majority to support the bill, either in the House or the Senate. Furthermore, Dave Siegel and ALPA recently meet with Senator Rick Santorum (R-PA) to sponsor a similar bill, but up to this point Santorum or for that matter no other Senator will break party lines and go against the Bush Administration. The major problem is that Chief of Staff Andrew Card, Treasury Secretary Jack Snow, PBGC Executive Director Steve Kandarin, and some key congressional members oppose pension reform. These individuals believe a dramatically scaled down temporary legislative solution and cash balance plans are the answer for today's defined benefit underfunding problem.

In fact, this is part of the problem Tilton referred to when he said there was "opposition of some key members of Congress (Republicans)."

In addition, the Treasury Department has clearly let it be known that if any plan costs the government money, the legislation will not be signed into law.

In regard to US ALPA, if H.R. 2719 or a similar bill becomes law the US Airways pilots would see their pension restored.

Best regards,

Chip

 

[tumbleweed]

What drives this guy?

 

[737nCH11]

Call me naive, but I think this situation will be resolved.

Airline management, airline unions, and the AFL-CIO are joining together to address this issue. According to sources they are being well received on Capitol Hill. This is a huge issue which affects many voters, so I believe a quick solution is in the best interests of the politicians.

P.S. Chip, if the airlines get legislative relief on this am I correct in assuming that the U pilot group will have their pensions restored? That would be a good thing.

 

[737nCH11]

Chip,

How do you see things going with this issue? Do you think there will eventually be enough support for it to pass?

 

[USA320Pilot]

737nCH11:

737nCH11 asked: "How do you see things going with this issue? Do you think there will eventually be enough support for it to pass?"

Chip answers: 737, it''s difficult to handicap whether or not we will be successful to obtain legislative relief. We are using a full court press and we have two Congressman who are writing personal letters to their colleagues requesting support for the pending bill. The biggest issue is the Bush Administration who is against a legislative solution. We are gaining ground and if I was forced to give odds, I would say it''s probably a 50-50 chance we will be successful.

Best regards,

Chip

 

[737nCH11]

Chip,

I wonder if we'll see a repeat of what happened when congress pushed through the airline relief package a couple of months ago. I was amazed at how willingly they overrode Bush

Could we possibly see a repeat performance????

P.S. Is Arlen Specter still around, and if so is he going to support this? He seems to have some influence on the Hill.

 

[ualflynhi]

A better question is who among the employees is going to have their pensions slashed.

 

[767jetz]

Chip,

I have 2 questions for you:

1- Why are you still here? I thought you claimed to only post on the US board.

2- Who cares if you broke anything first or last? I think the answer is, nobody but you. Are you trying to win a medal or an award or something? I don't care enough to research or keep track of who said what first. And by the way, quoting someone else's news report is not considered "breaking news." Breaking wind maybe.

Maybe you think that breaking news somehow bolsters your credibility. I hate to BREAK this to you, but it doesn't. Your posts are still transparent, and obviously biased.

To All:
If I am wrong here, and there is anyone out there who really places any importance whatsoever on who said what first, please chime in!

Is it just me or does this sound a bit petty?

 

[767jetz]

DELETED BY MODERATOR

 

[Fly]

Don''t let it get to you 767jetz..... it must be obvious to all what he''s about.

 

[767jetz]

----------------
On 7/22/2003 921 PM tumbleweed wrote:


What drives this guy?

----------------​

I feel like I've been initiated into the "DELETED BY MODERATOR" club!

I guess my first attempt to answer you're question was seen as insulting. I will attempt to re-word my response in a more politically correct fashion.

Many things could drive this guy. IN MY OPINION, Chip's attitude and posts are narcissistic. Look it up on the internet and you'll see what I mean.

(to the moderator- this word can be found in the dictionary, somewhere between the words hypocrit and sophist.)

 

[USA320Pilot]

767jetz:

I fully understand your frustration, concern, and fear, however, if the Air Line Pension Act of 2003, recently introduced as H.R. 2719, does not become law, then it appears from this week's Glenn Tilton employee message, the UA employees could have a choice. Either terminate your pensions and have a better chance of survival or liquidate.
Tiltion's comment that "pension plans are cash liabilities that must be met" for the company to successfully emerge from court protection are simple enough to understand. Furthermore, Tilton said the new "collective bargaining agreements reduced pension obligations to some extent," but it's clear there must be more retirement plan concessions.

I was just wondering, how do you think ALPA will react to Tilton's comments, if there is not a legislative solution for the underfunded pensions?
Best regards,
Chip

 

[USA320Pilot]

737nCH11:

737nCH11 asked: "I wonder if we'll see a repeat of what happened when congress pushed through the airline relief package a couple of months ago. I was amazed at how willingly they overrode Bush on that one. Could we possibly see a repeat performance????"

Chip answers: One of the benefits of US and ALPA having their headquarters near Washington is more availability of US management and ALPA officials to meet with key government leaders. Dave Siegel has hired a leading lobby firm to fight for H.R. 2719 and US vice president of government affairs Rosemary Murray has been meeting with key Congressional staffers on a daily basis, to support ATA, ALPA, and AFL-CIO efforts to keep the DB retirement plans in place. The current strategy is to focus on Senate Finance and House Ways and Means Committee members to try and attach the bill to other legislation, which would prevent the bill from going to conference. This was the same approach used by legislators to get the Airline Relief Act signed into law when the bill's provisions were attached to the Iraqi War Spending bill, thus bypassing Bush Administration objections.

We are making progress and gaining traction, but the key problems remain Andy Card, Jack Snow, and key members of Congress (Republicans) who oppose the proposed legislative solution to the DB plan problem.

Best regards,

Chip

 

[ualflynhi]

No matter who is first to deliver the news the bottom line is
UAL has a huge pension liability and they are going to deal with
in a way management,pilots,mechanics,cs,and the ramp are not going
to like.First at bat will be the pilots,and I believe that reason
among others is why they havent tried hard to emerge from chap11.
The rumor that is going around now is that ALPA leadership has been
told they want the b-plan cancelled,and a more realistic pension
payment scheme.Good luck to all.