This information is no longer current - it is for reference only. It is an archive review of events that took place during United Airline's Chapter 11 Bankruptcy from December 9, 2002 - February 1, 2006.

MEC Officer Letter: Pension Estimate

Page updated: November 03, 2004

October 29, 2004

Ladies and Gentlemen:

United’s bankruptcy continues to bring a multitude of challenges as we work to rebuild our airline and protect our Contract. For several months we have been working under the company’s looming threat of another assault on our contract and pension benefits. These threats are much closer to materializing and we must stand together to protect our wages, work rules and benefits. Over the next several months we will be forced to make difficult decisions related to United’s bankruptcy and the place in which we find ourselves. While we are all too familiar with concessions and what they mean to us, we want you to have a thorough understanding of pensions.

United Airlines management, however, remains intransigent in the belief that the only way to successfully exit bankruptcy is through employee concessions.

The place we find ourselves in is not where we want or deserve to be. United Airlines management, however, remains intransigent in the belief that the only way to successfully exit bankruptcy is through employee concessions. It pursues this exploitation of labor without acknowledging the contributions we've already made and without addressing management's own bloated structure. Cost savings can be realized by paring down in many areas other than labor. Rather than fully exploring these alternatives, management once again targets us for concessions that are neither fair nor reasonable.

One such concession that the company has identified as a likely candidate is the termination of our pension plans. It is therefore important that we all understand what our pensions mean to us. A pension termination would affect each of us individually and we must reject the myth that it is an issue important only to those at retirement age.

The belief that termination of our pension plan only affects those of us at retirement age or Flight Attendants who intend to work at United until retirement age is not correct. It is those of us who are furthest away from retirement that could potentially lose the most. On the other hand, management would have us believe that termination of our pension plan will have a minimal impact upon the benefits we would otherwise receive. To test the validity of that claim we must be armed with the facts.

To fully realize the significance of the impact a terminated pension plan would have, you need to compare the difference in the size of your benefit if the plan remains intact and if it is terminated. One Flight Attendant with nearly nine years of service found that the comparison meant a difference of about $2,000 in her monthly pension benefit at normal retirement age. Enclosed with this letter is a pre-addressed postcard to United’s Pension Department for the purpose of obtaining a pension estimate. Comparing this estimate with another run through SkyNet will enable you to compare the amounts under the present defined benefit plan continuing versus what you would receive if the plan terminates.

The challenges that we face today are fierce and seem to be unrelenting, but we have repeatedly proven our ability to meet these challenges. It is imperative that each of us remain informed and engaged through our website, Dear AFA, E-lines and Local Councils. Flight Attendants have demonstrated an unwavering commitment to a successful reorganization of our airline and steadfast dedication to ensuring the protection of our wages, work rules, healthcare and pensions. We will continue to determine our collective action as we focus on the values most important to United Flight Attendants.

In Solidarity,

Greg Davidowitch
President

Helen McArdle
Vice President

Shirley Barber
Secretary-Treasurer

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