Delta can pay Giuliani firm but not pilots' pensions

[seafan]

By Katherine Griffiths in New York
Published: 17 September 2005

The bankrupt US carrier Delta Air Lines has told 3,500 retired pilots it does not have the money to pay their pensions next month, according to its initial plans to restructure its finances.

But, in a move likely to anger its pensioners, the company has asked for permission from a court to pay $400,000 a month to a financial advisory firm set up by New York's former mayor, Rudolph Giuliani. Delta began using Mr Giuliani's firm in July 2004 to help it create a restructuring plan and has paid it $2.4m in the past 12 months.

--snip

(a bit more)

http://news.independent.co.uk/business/news/article313277.ece

[Fridays Child]

1. Bushworld™ priorities, you know. Of course, it would never occur to them

that the last thing we need is a bunch of really pissed off pilots because that would involve seeing past the ends of their greedy little noses.

[rfkrfk]

6. the pilots could buy the company for chump change n/t

[cpamomfromtexas]

2. PILOTS NEED TO STRIKE ACROSS THE BOARD!

Back in the 60's my dad went to work for a major airline. He said right before he was hired all the pilots of the majors went on strike at the same time. He said that made for a nice smooth career.

Now for today. There are too many pilots that think they're Republicans and they haven't gotten mad enough to strike.

My question is-What will it take?

[countmyvote4real]

4. No job might be the beginning of an ephamy. n/t

[October]

9. So many scabs would cross that line

Remember Lorenzo, Continental Airlines, Eastern?

The government will step in and stop a strike because of "economic reasons," "commerce," "national security" every time. It's changed since the 60's -- there's no leverage for the workers any more. And now even pensions/retirement is not protected by law. Companies can raid those funds as they wish -- and it's not against the law.

FedEx is currently picketing. No contract negotiations. Management knows that there are many unemployed pilots out there (Delta, United, etc.), so they have no reason to sit down at the table with the pilots' union. They sign the contract, but ignore it with the attitude of "sue us." They just hold that threat over their head -- that there are many pilots out there who'd love to have their job. Even though the company is making record profits, they feel no need to come to work on the contract -- especially with this Bush administration in place. Bush would call off a FedEx strike in a heartbeat (because they deliver mail and it would be labeled a national security crisis or something), and they would love nothing more than to render another powerful union anemic in the eyes of the country.

The only thing pilots have going for them is that it is a highly skilled profession where perfection on the job is required -- it's the "norm." There's much training involved and government regulations, etc. But you know all this, I'm sure since your dad did it.

Plus, many of the pilots come from the military and many consider themselves to be Republican -- all the while the union has provided a nice lifestyle for them -- still they'd rather believe "the company" did it for them. That's the sick truth. It takes some of these guys DECADES to see the light, and it's usually when they're furloughed, lost their pension and are too old to behired elsewhere...

[Trillo]

3. How many pensions could 400K pay?

80? 120? More?

[NYC]

5. Refusing to honor existing obligations (pensions)

while paying newly incurred expenses to Bush friends. Moral values.

$2.4 million in the past 12 months to Giuliani. Nothing like exploiting 9/11 for profit.

[indepat]

7. Would have thought pensions were paid from funded pension plans,

not operating profits.

[IDemo]

8. headline - "Bankrupt US airlines warned on pensions"

The US agency that insures private pensions warned Delta Air Lines and Northwest Airlines not to skip payments to their pension plans while they are in bankruptcy.

"Northwest and Delta continue to be responsible under the law for making their pension contributions," said Bradley Belt, director of the Pension Benefit Guarantee Corporation.

The agency said Northwest's pension plans were underfunded to the tune of $5.7 billion. Of that, the PBGC would take over $2.8 billion if the plans were to be terminated, leaving employees with a $2.9 billion pension shortfall.

Delta's plans are underfunded by $10.6 billion, and the PBGC would be forced to pick up $8.4 billion of liabilities if it were terminated.