IF YOU DON'T THINK THESE GUYS PLAN AHEAD,
CHECK THIS OUT - story compiled by Tom Dennen
United and Continental Airlines agreed to a deal, to be announced officially on Monday, May 2 on a $3 billion merger that would create the world’s biggest airline, according to people briefed on the negotiations.
In 2004 United Airlines filed a Chapter 11 bankruptcy suite during which it dumped its pension plans, which were underfunded by nearly $10 billion, on the Pension Benefit Guaranty Corporation (PBGC), the Federal agency insuring pensions that is running a $23 billion deficit. Because the PBGC only insures pensions up to a certain amount, many United employees and retirees saw their pensions slashed dramatically - "how much less can we pay you and still keep you workiing?'
Chapter 11 proceedings have longer term consequences once those companies resume normal operations as United has for some time..
In 2009, it renegotiate its collective bargaining agreements with several unions (including the pilots' union) and scored a key point which allows United - in the airline's view - to outsource pilot jobs (to union and non-union pilots) on a limited number of flights with partner airlines.
According to the U.S. Department of Labor, in 1978 workers put in only 11 percent of total contributions to retirement plans, while corporations put in 89 percent; by 2000, the employee share had leapt to 51 percent and the company share had fallen to 49 percent. Chapter 11 changes are already happening, as retirees find they are having to go back to work to make ends meet.
Pat O'Neill, a retired United Airlines mechanic, is now driving a truck after his pension and benefits were cut. Winson Crabb and Gil Thibeau, two National Semiconductor retirees with widely different financial results from their company's 401(k) plan, are both still working in retirement.
"What is the meaning of retirement if the only way you can live is to work?" asks Notre Dame professor Teresa Ghilarducci "The answer is there is no meaning to retirement anymore. We are now shifting from lifetime pensions to lifetime work. It's the end of retirement."
CLICK HERE FOR A VIDEO ON HOW BANKRUPTCY WORKS FOR CORPORATIONS.
THEN BUY THE BOOK:
No comments:
Post a Comment