Hi there,

If you think Democracy Now!’s reporting is a critical line of defense against war, climate catastrophe and authoritarianism, please make your donation of $10 or more right now. Today, a generous donor will DOUBLE your donation, which means it’ll go 2x as far to support our independent journalism. Democracy Now! is funded by you, and that’s why we’re counting on your donation to keep us going strong. Please give today. Every dollar makes a difference—in fact, gets doubled! Thank you so much.
-Amy Goodman

Non-commercial news needs your support.

We rely on contributions from you, our viewers and listeners to do our work. If you visit us daily or weekly or even just once a month, now is a great time to make your monthly contribution.

Please do your part today.

Donate

United Airlines Faces Largest Corporate Pension Default in History

HeadlineApr 26, 2005

In business news, United Airlines has reached a settlement with the federal government that will result in the airline saving $645 million in each of the next five years at the expense of taxpayers. The government is allowing the airline to hand over four under-funded pension plans in what the Wall Street Journal is calling the largest corporate pension default in U.S. history. As a result of the settlement, employees of United will receive smaller pensions that they were once promised. The Association of Flight Attendants described the settlement as QUOTE “morally criminal.” Several of United’s unions have threatened to strike if their pensions end. The Center for American Progress noted on Monday that the federal Pension Benefit Guaranty Corporation agreed to allow the airline to shed $10 billion in pension commitments just as President Bush signed legislations making it harder for citizens to declare bankruptcy.

The original content of this program is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. Please attribute legal copies of this work to democracynow.org. Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.

Non-commercial news needs your support

We rely on contributions from our viewers and listeners to do our work.
Please do your part today.
Make a donation
Top