United gets approval
to shift pension plans

Unions denounced the ruling.

“Today’s decision is tragic and financially destructive for many of the 10,000 current IAM retirees who will see their monthly checks reduced because (CEO) Glenn Tilton broke the promise United Airlines made to them,” said Randy Canale, president of District 141 of the International Association of Machinists and Aerospace Workers, which represents United ground workers. “Future retirees can expect to see their benefits cut by up to 27 percent.”

The Association of Flight Attendants, which threatened unspecified labor actions if the pensions were struck, will meet to decide its next step, said spokeswoman Dianne Tamuk.

“We feel sold out,” by the action, she said. Tamuk, 49, said her pension will be reduced from $1,700 a month to $800 a month by Wedoff’s ruling.

United’s effort to dump its pensions has been watched closely by the rest of the airline industry, where record fuel costs, the lowest fares since the early 1990s and stiff competition have caused network carriers to lose billions of dollars. Tuesday’s ruling, following a step taken successfully by US Airways Group Inc. in February, clears the way for similar actions elsewhere.

United’s biggest competitors would be under the most pressure to follow suit. American Airlines, the largest U.S. carrier and a unit of AMR Corp., has said it will keep its pension plans but is concerned about No. 2 United gaining a financial advantage with the elimination of its pensions.

MORE FROM AVIATION

Aviation Section Front

U.K. court: British Airways can bar strike Boeing has much to prove with 787 U.K. transit crews may follow British Air strike Southwest Air tops list of best places to work Mechanics target overseas airline maintenance Boeing 787 takes flight after two-year delay British Airways crew to strike over Christmas Boeing: 787’s first flight may be Dec. 15 Boeing’s delayed 747-8 completes engine test American, partners offer $1.1 billion to JAL Aviation Section Front   Add Aviation headlines to your news reader: