Stolen Pensions

A web board posting prior to the PBGC takeover of the USAir and United pilot pension plans. Ultimately many pilots received a mere fraction of their earned benefits:

We had better start talking about ways to reinstate full pensions at United and USAirways.  The fact that current and future retirees are taking a six figure annual cut is a real crime.  It is like someone has reached into an IRA or 401K account and stolen $1,500,000. If IRA’s and 401K’s were to be sacked (Who knows?  Maybe the robber barons will soon figure a way to do that next) would we hear, “Somebody has that much money in his retirement fund?  Why, that is too much!  Nobody deserves to have that much money!” 

Who is going to get the message out that pilots have earned the benefits in the defined benefits plan; that it is part of their compensation package? 

Who is going to get the message out that stealing the benefit is another step toward corporate feudalism?  That our country is no longer a democratic republic but an oligarchy with “our” representatives being marionettes and the corporate emperors the puppet masters? 

There is no one but airline pilots in the airline pilot corner.  There is a widespread view that pilots are “prima donas” and “rich,” of course, and in everyday life there are too few [pilots] to notice.  But they must be noticed! The public needs to know that the people at UAL and USAirways are the “canaries in the mineshaft.”  Their problems are spreading to the rest of America. 

Why should GE-CAS, Airbus, Exxon or any other creditor or venture capitalist come before employees who have worked years securing a future?  DB pensions are just like IRA’s or 401K’s … they are part of compensation earned in years past. 

When it comes time to “divide the spoils” here’s the way the pie needs to be cut; Full pension funding first, then negotiated settlements with creditors, re-payment of risk capital and then obligations to stockholders, in that order.  If you get to where there is no money before you get to the end of list, so be it; the remaining group of risk takers is left shorthanded.  And perhaps the company was not a viable business and needs to shutter its doors. 

So what do airline pilots have to do to spread the word?  Publish a manifesto and instead of flying airliners for a day or two, deliver their message, fifty thousand strong, on the steps of the Capitol? Now is not the time for pilots to pull up the ladder and let their brothers and sisters at United and USAirways down.