Subject: [retup] From the AFA Website -
PBGC must provide documents
Pension Fight: Legal Track Latest Update: August 11, 2005
PDF Version
Ladies and Gentlemen:
Yesterday we prevailed in a hearing that resulted in a court order
for the Pension Benefit Guaranty Corporation (PBGC) to hand over
documents AFA requested as part of the pension case. Remember that
we are pursuing two separate court actions stemming from the sell-
out deal that United entered into with the PBGC to terminate all
employee pension plans for $1.5 billion. One action is against PBGC,
and the other against United.
In the U.S. District Court for the District of Columbia, AFA
maintains that the PBGC violated federal pension law in the actions
that led to its take-over of the Flight Attendant Pension Plan. A
dispute arose over our request that the PGBC provide certain
documents. AFA attorneys prevailed in a hearing yesterday and the
court ordered the PBGC to provide AFA with all internal documents
relied upon directly or indirectly in reaching the settlement
agreement with United. The documents include analysis done by
Greenhill (the PBGC's outside financial advisors), and any internal
agency policy documents relevant to the settlement.
Yesterday's hearing proved to be a victory for Flight Attendants,
and a step closer to getting to the bottom of the deal that United
made with the PBGC. Yesterday's hearing proved to be a victory for
Flight Attendants, and a step closer to getting to the bottom of the
deal that United made with the PBGC. Remember that before that deal
was signed the PBGC stated clearly and on the record that the
plan "can and should be maintained by the company upon emergence
from Chapter 11." We intend to hold them accountable for their own
words.
In the action against United, we are appealing the bankruptcy
court's approval of the Company's deal with the PBGC. The U.S. Court
of Appeals for the Seventh Circuit, located in Chicago, approved our
request for expedited treatment of the case, requiring all legal
briefs to be submitted by September 2nd and has scheduled a date for
oral argument on September 13th before a three-judge panel of the
Court of Appeals.
Under Section 4047 of Employee Retirement Income Security Act
(ERISA), the PBGC is empowered to restore a pension plan in any case
in which it determines that restoration of a plan is appropriate and
consistent with its duties under ERISA. Our evaluation of the
viability of our pension plan - whether measured under legal,
financial or ethical standards - provides a definitive conclusion:
termination of our Flight Attendant Defined Benefit Pension Plan is
unacceptable - the plan must be restored.
In Solidarity,
Greg Davidowitch, President
United Master Executive Council
jbbrooks