USAirways Pilots Contest Pension Termination
 

We have recovered 20,000 pages of documents from the PBGC and other sources regarding the events and circumstances of our pension termination in March 2003. We have uncovered many indiscretions that all point to collusion, inappropriate behavior and possible fraud against our pilots and the Defined Benefits Pension Plan. We are in the process of doing a full forensic accounting of the events that led up to our pension termination, and we will report the findings of this group early next month. If this investigation determines we indeed have legal cause, we will be filing a lawsuit on your behalf prior to the end of March. We want to make this clear to our pilots; this is an uphill battle and will take time, energy and future funding from our pilots to pursue. After the forensic evaluation is complete, decisions will be made and the appropriate action taken. To answer many of your questions, whether this investigation leads to criminal action against specified individuals will be determined by Federal Prosecutors. The initial complaint, if filed, will be against certain named defendants that records indicate not only intentionally financially decimated our pension prior to termination but outright stole those monies for their personal use. We are working with many involved parties, and as the webs of indiscretions are unwound, we continue to find more and more involvements that could lead to the eventual return of our pension monies. This will be a tough road, but rest assured what has been uncovered so far indicates that our pension was in fact fully funded to ERISA standards in the years 2001 and through December 2002. During the first 3 months of 2003, many improprieties occurred – the bottom line is that the give-back of our pension was never required by any creditors as a means of emerging from bankruptcy. Dave Siegel had arranged all DIP financing prior to entering bankruptcy, the largest being the ATSB loan that had no requirement of pension termination. The documentation we have makes it apparent that, due to the lack of due diligence (no audits or forensic accounting were completed on our pension monies) and improper oversight, our pension was in fact not only fraudulently misrepresented by US Airways but intentionally raided prior to being turned over to the PBGC. The Company ordered the bankruptcy auditors, KPMG, not to audit our pension, and the PBGC has no obligation to audit the funds once they are turned over. Our MEC at the time was sold on the fact that US Airways was not coming out of bankruptcy with our pensions. Quite simply, we believe that was the fraud.

Ooops ..... message deleted due to error on my part!

now 4 active lawsuits for one little union.

There may be 4 suits being pursued by USAPA but one is not. It is being handled by retired pilots who got hosed, who are NOT represented by ALPA or USAPA. I believe the blurb is extracted from the retired pilots newsletter.

Your jibe about the 'little union' in this case may be misplaced and reactionary.

(FWIW, I was told when ALPA was approached about the problem of problems in the termination of the pension, the retired pilots were quickly and succinctly told essentially that ALPA is not interested in the problems of retired pilots and does not represent them. Also, ALPA reps had told the line pilot it was a 'line in the sand' and no termination would take place without a vote by the line pilot. Right. Didn't happen. The pension was terminated with agreement by the MEC and by national. Nice.. :D)

Sounds like ALPA could be sued as well. Given the astonishing degree of corporate and executive fraud that has come to light in the past six months, I believe that it's entirely probable that there's fire under all the smoke.

Most of the ALPA unions have turned into company unions now.

True labor power would have had every professional pilot withold their services in protest of the retirement rape. US Airways was the first dominoe with the rest to follow- thousands lost thousands. We capitulated in the face of adversity.

Yes, lawsuits and prosecutions would have transpired but every battle has casualties unless you surrender without a fight. I guess standing tall is no longer an American trait.

I know this is "hardcore" in the new landscape of "weak sisters" but I come from an Eastern Airline family of principles.

Carpe Diem

It believe you are correct.

Pretty much the same thing with the UAL pension. A very important point is that every active pilot will be a retired pilot someday. How much is a retirement benefit really worth if a union, ALPA in this case, won’t fight for it?

Not be picky, but ALPA is PROHIBITED BY LAW from representing retired pilots in bankruptcy. That is why there is 1113 (for active employees) and 1114 (for retired employees). Don't know anything else about US Airways so I can't comment. Have heard this same complaint from Delta retirees, but they don't understand the law. Bankruptcy law recognizes that there can be different priorities between active and retired employees and prevents any cross representation in Chapter 11. Pension termination can only take place by court order. The MEC can choose to fight the termination or not, but they can't terminate a pension, only the judge can do that and only after the debtor makes their case. Delta retirees fought the Delta pension termination and it was terminated anyway. Sorry, but elections matter. Presidents get to appoint federal judges, including bankruptcy judges.

Ding, ding, ding. I think they have a winner on this one and they are doing what ALPA should have done a long time ago. I hope they win and show my union how it is supposed to be done. :rolleyes:

I do not think that is correct but we may be saying much the same.

The courtsm may terminate a pension but I know in the case of the USAirways' termination, the MEC signed off and AGREED on the termination. It never got to anyone fighting it and never went to a vote from the line pilot. That was but one of the incredible slaps at the line pilot from a very dysfunctional organization.

I would add that I can appreciate the position of some at AmWest who were happy with ALPA. From some events I know of.. and was involved in, I had a slightly less opinion of national.