U.S. Agrees to Take Over Four Pension Plans at United

[rsmith6621]

snip.....


Tim Boyle/Getty Images
Some United Airlines employees could see a cut in their pensions. The federal government said yesterday that it had reached an agreement to take over all four of United Airlines' employee pension plans, with a shortfall of $9.8 billion, making it the biggest pension failure since the government began insuring pension benefits in 1974

http://www.nytimes.com/2005/04/23/business/23united.html?ex=1114833600&en=a769bfacb2f220ca&ei=5040&partner=MOREOVERNEWS

[Erika]

1. Corporatism being bailed out again by the taxpayers

They didn't touch one cent of the remuneration of the execs, did they? Bush's redistribution of wealth. Soak the poor and give to the rich.

[enid602]

2. bailout

I don't think it's a bailout. When ERISA takes over a failed pension, it merely manages what funds are left, and only guarantees a very small portion of the benefit. The United employees will be lucky to see 10 cents on the dollar. I always thought ERISA was a 100% guarantee, but that it not the case.

[CHIMO]

4. So Now

Their competitors have to do the same to stay competitive.

[mbperrin]

8. It is a bailout, because the companies save billions of dollars;

let's face it, if they gave a damn about employees, they would have done something long ago.

Just another "responsible" capitalist act.

[mike_c]

9. it never ceases to amaze me how thoroughly the wool...

...has been pulled over worker's eyes. Most corporations have zero loyalty to anyone or anything except their own self-interest-- even apparent altruism toward employees and customers is always weighed from the perspective of profits. This is just another example-- NO promise made by a corporation is ever binding, and they will ALWAYS, and without any remorse, cast those promises aside in an instant if it suits their purposes.

Incorporation of business was the biggest mistake the American political system ever made, IMO. The corrosive influence of corporations at both political and social levels is tightly entertwined with self-serving politics-- together they are destroying democracy before our eyes.

Corporations largely control the machinery of change now, at least the political machinery.

[Nostradammit]

3. Didn't we already throw $20 billion their way

For letting us fly one of their planes into the WTC?

[AnneD]

5. this is a time bomb

waiting to explode.
1) more co are walking away from their obligations to the employees that built the co. They see withholding contributions to the PBGC as a cost reduction strategy.
2)When it goes under, the ceo's get the golden parachute and the pension funds are way behind every other creditor in recooping money.
3)As more and more Boomer's start retiring, the strain on the PBGC will crash the system. And just like my friends at Enron, these employees will enter retirement with out adequate funding.
4)Couple these with changes to SS and you have a bleak retirement picture indeed.

[Gin]

6. I thought the PBGC guarantees 75% of the pension funds to the

participants. Anyone know if thats true?

[hatrack]

7. Just one problem - PBGC is flat broke

So how does this "solution" solve anything?

[rsmith6621]

10. Another Update On This Issue

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/04/23/BUGTSCDTG31.DTL&type=business

Snip...."If we can't resolve pensions and other issues ... we are prepared to strike United Airlines," said Joe Tiberi, a spokesman for the International Association of Machinists, which represents 19,500 United ramp workers and other ground employees.

The IAM is taking a strike vote beginning May 3, with the results expected May 10 -- one day before a Bankruptcy Court hearing starts on United's plea to have wage and benefit concessions imposed on the workers if they can't reach agreement before then......end

[sallyseven]

12. I think so. They try anyway.

[gratuitous]

11. Sure, United can default on $9.8 billion in pension obligations

And Uncle Sugar will be there to make sure that none of their executives have to lose a minute of sleep worrying about their impoverished former employees.

But if YOU, you goddam irresponsible credit cardholder, even THINK about leaving the banks holding the bag for $5,000 worth of overpriced crap you couldn't afford bought with credit the bank never should have extended to you in the first place, well . . .