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United Flight Attendants to Vote On Pension Plan |
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Wednesday, 25 January 2006 |
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After a yearlong fight to protect the retirement security of flight attendants at bankrupt United Airlines, AFA-CWA has reached a tentative agreement with the airline for a defined contribution pension plan.
United flight attendants will vote on the pension plan by the end of February. Union leaders have mixed feelings about the plan, as it replaces what had been a secure defined benefit plan.
"While we are pleased to be able to offer a replacement plan for the United flight attendants' consideration, these kinds of plans will never provide the dignified and secure retirement guaranteed by the defined benefit plan destroyed through the bankruptcy process," AFA-CWA President Pat Friend said.
Greg Davidowitch, president of the AFA-CWA Master Executive Council at United, described "exhaustive efforts" in the courts, on Capitol Hill and at the bargaining table to reach agreement. "Within the context of bankruptcy and today's political climate, this agreement provides a foundation of retirement security for flight attendants," he said. "Now the flight attendants at United Airlines will have the final say."
The plan includes a 3 percent company match effective Jan. 1, 2006, coupled with an additional 2 percent contribution. The contribution will grow to 2.5 percent next January and 3 percent the following year. With the matching funds, United will ultimately be putting up to 6 percent into the plan, double what the company originally proposed. The agreement also includes $20 million in convertible notes and immediate vesting for all flight attendants currently at United.
AFA-CWA represents 17,000 flight attendants at United and more than 46,000 flight attendants in all. For more information about the United plan, go to unitedafa.org. |
