United Airlines-sad story
Jeez, United has been trading on the OTC mkt for the past few years. Less than a buck a share. The second largest airline in the world.
What's hairy is that retirees just lost 25% of their pension. Granted, pensions may be a thing of the past, but imagine working your whole career for a once great company, then having to "adjust" your standard of living by 1/4? Whew.
Here's the story
"CHICAGO (AP) -- A federal bankruptcy judge approved United Airlines' plan to terminate its employees' pension plans on Tuesday, clearing the way for the largest corporate-pension default in American history.
The ruling, which carries broad implications for U.S. airlines and their workers, shifts responsibility for United's four defined-benefit plans to the government's pension agency.
That will save cash-strapped United an estimated $645 million a year, part of the $2 billion in annual savings it says it needs to line up enough financing to emerge from Chapter 11 bankruptcy as soon as this fall.
But the cost will be painful to its employees, many of whom stand to lose thousands of dollars annually off their pensions when they are assumed by the Pension Benefit Guaranty Corp. A total of 120,000 current and retired United workers are covered by the pensions, including 62,000 active employees."
What's hairy is that retirees just lost 25% of their pension. Granted, pensions may be a thing of the past, but imagine working your whole career for a once great company, then having to "adjust" your standard of living by 1/4? Whew.
Here's the story
"CHICAGO (AP) -- A federal bankruptcy judge approved United Airlines' plan to terminate its employees' pension plans on Tuesday, clearing the way for the largest corporate-pension default in American history.
The ruling, which carries broad implications for U.S. airlines and their workers, shifts responsibility for United's four defined-benefit plans to the government's pension agency.
That will save cash-strapped United an estimated $645 million a year, part of the $2 billion in annual savings it says it needs to line up enough financing to emerge from Chapter 11 bankruptcy as soon as this fall.
But the cost will be painful to its employees, many of whom stand to lose thousands of dollars annually off their pensions when they are assumed by the Pension Benefit Guaranty Corp. A total of 120,000 current and retired United workers are covered by the pensions, including 62,000 active employees."
posted by Twain at
10:11 PM
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