Pensions Top Concern in Merger Meeting with PBGC

IAM representatives met with acting director of the Pension Benefit Guaranty Corporation (PBGC) Vince Snowbarger and his staff to discuss the impact a merger between United Airlines and Continental Airlines could have on employee pension plans.

Transportation GVP Robert Roach, Jr., District 141 President Rich Delaney, District 142 President Tom Higginbotham and members of the IAM’s legal and strategic resources departments each described the importance of preserving our members’ defined benefit pension plans and retirement security.

Continental ramp service, stock clerks and public contact employees all participate in a Continental company-sponsored defined benefit pension plan, while their IAM-represented counterparts at United participate in the multi-employer IAM National Pension Plan (NPP). Continental’s IAM-represented flight attendants also participate in one of Continental’s defined benefit pension plans and have negotiated the IAM NPP as a contingency plan. United flight attendants do not currently have a defined benefit pension plan.

The PBGC supplied general responses to the IAM’s questions, but would not address UAL/Continental specifically. They did, however, advise that we should discuss any formal proposals concerning pensions with the PBGC before any agreements are reached.