WASHINGTON--(BUSINESS WIRE)--The International Association of Machinists and Aerospace Workers (IAM) this week concluded discussions with the Board of Trustees of the IAM National Pension Fund (IAMNPF) that will increase pension benefits by 35 to 45 percent for approximately 17,000 IAM members at United Airlines.
“IAM members at United Airlines are covered by the best pension plan in the airline industry, and that plan just got a whole lot better today,” said IAM General Vice President Sito Pantoja, who credited IAM President Tom Buffenbarger and General Secretary-Treasurer Robert Roach, Jr. as well as the trustees of the IAMNPF for their support and assistance throughout the discussions.
While United Airlines terminated all employee pensions during its bankruptcy reorganization in 2005, the IAM was able to secure a defined-benefit plan with the IAM National Pension Plan (IAMNPP) during the ensuing round of bankruptcy bargaining. Due to United’s precarious financial condition at the time, the agreement called for IAM members at United to receive 85 percent of the normal benefit. Today’s agreement with the IAMNPF mandates United IAM members receive equal benefits as other IAMNPP participants.
“When combined with improvements contained in the recently ratified contracts at United, the future service pension benefits of IAM members at United will increase by approximately 35 percent this year, and by over 45 percent during the term of the contracts,” said IAM District 141 President and Directing General Chairman Rich Delaney. “I want to thank all IAM members at United for their support and solidarity, and it makes me very happy that they and their families’ retirement security has been improved greatly.”
The IAM represents approximately 32,000 fleet service, passenger service, stockroom, maintenance-training instructor, fleet technical instructor, security officer and food service employees at United Airlines and is the largest airline union in North America. Pre-merger Continental Airlines employees will continue to be covered by a company sponsored defined-benefit pension plan.
Please click here for more information and to view the letter of notification from the IAMNPF.
Please click here to visit IAM District 141 for more details.