Pension Payment Deferral Cause for Concern with Flight Attendants
July 14, 2004
CHICAGO -- United Airlines Flight Attendant Master Executive Council President Greg Davidowitch, of the Association of Flight Attendants-CWA, AFL-CIO, issued the following statement regarding United’s deferred decision on whether to pay the quarterly minimum funding contributions to its pension plans:
“Following the Air Transportation Stabilization Board’s recent denial of a loan guarantee, we find ourselves at a critical juncture in United’s bankruptcy. Management’s deferral of pension payments as opposed to termination of the pension plans, underscores the importance and recognition of not making the kind of decision that would destroy the long term prospects of our company.”
“During the 2003 Section 1113 process, which yielded $314 million in annual cost savings from Flight Attendants, we made pension changes totaling $45 million per year primarily affecting those at retirement age. United Airlines now enjoys success with a competitive edge and customer confidence because of the hard work of Flight Attendants. Placing additional concessions on the radar screen would put the reorganization in jeopardy.”
More than 46,000 Flight Attendants, including the 26,000 Flight Attendants and retirees at United, join together to form AFA, the world’s largest Flight Attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO. Visit us at www.unitedafa.org.