United Airline Pensions May Go (sorry folks, have to save the corp.)

http://www.cbsnews.com/stories/2004/06/28/national/main626381.shtml?cmp=EM8705

United Airlines would be within its rights to terminate its employee pension plans but hasn't yet decided to do so, an attorney for the carrier said Friday, as two unions urged a judge to block a financing plan they say is predicated on the airline halting fund contributions.

The hearing came a day after the release of court papers in which United warned it "likely" will have to end those pension funds in order to secure the loans it needs to get out of bankruptcy.

Such a default by the nation's second-largest airline would affect about 119,000 employees and retirees and be the largest ever by a U.S. company.

-snip-

"We understand the stress and concern this has imposed on our employees and retirees," Sprayregen told U.S. Bankruptcy Judge Eugene Wedoff. "However, we believe we would be doing the court and our constituents a disservice if we didn't communicate where we are in our thinking."
-snip-
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doesn't he talk nice as he shafts the workers.

What happens to the workers and/or pensions if the airline remains in bankruptcy? I can't imagine the alternative to losing the pensions would be better. It sounds like the airline will default & the workers stand to lose even more than just the pensions.

It seems likely that if they default, they'll ask the government for another bailout. I'm not in favor of another bailout.

is never mentioned in these stories?

Nor in any of related - job cuts, health benefits cuts, outsourcing stories... NEVER is questioned the annual costs to the companies for debt accumulated through greedy acquisitions (for those who have done the merge and grow monolith thing)... nor when mergers are discussed are the COSTS to the company in the long term never discussed, nor questioned as to their impact on the bottom line.

My advice to employees of United Airlines or any other company that reserves the right to ruthlessly pull the rug out from under its employees?
Steal from your workplace. A LOT.