“Just days after United Airlines passed off billions in retirement obligations to the government’s pension agency, two Democratic lawmakers introduced legislation Friday to stall the takeover, and others like it, by the Pension Benefit Guaranty Corp.”
AS PER USUAL, ONLY DEMOCRATS ARE TRYING TO FORESTALL A MAJOR CORPORATION FROM DUMPING IT’S FINANCIAL OBLIGATIONS ON THE TAXPAYERS.
“Reps. George Miller, D-Calif., and Jan Schakowsky, D-Ill., proposed a 6-month moratorium on pension handovers until Congress can pass some kind of pension reform. The legislation would include United’s deal.”
BECAUSE IF UNITED GETS AWAY WITH IT, OTHER CORPORATIONS WILL FOLLOW, IN DROVES:
“All the major carriers will look to the United agreement to see if they can cut their own costs by dumping their workers’ pensions,” Miller said in a release. “And after the airlines, other industries will look to do the same thing.”
“United will force everyone to go back and do the math,” said Bob Mann, of R.W. Mann & Co., an airline industry consulting firm in Port Washington, N.Y. “Even smaller carriers in bankruptcy have cast a long shadow.” Mann pointed out that the advantages of the PBGC deal will not be lost on Delta Air Lines (DAL: news, chart, profile) , which this week called attention to its anticipated losses this year and liquidity issues.”
ONE KEY TO STOPPING UNITED: IF THE EXECUTIVES ARE ALSO AFFECTED?
“Miller and Schakowsky have been pushing for further pension reform on many levels. Amid United’s courtroom showdown over its retirement plans, the lawmakers are trying to tie executive and employee retirement plans together to avoid preferential treatment during bankruptcy.”
See full story:
http://www.marketwatch.com/news/story.asp?guid=%7B40C7B7F8-353A-47AD-942C-438D0DC86683%7D&siteid
google&dist
