United Airlines flight attendants lost a bid in court for an injunction to keep the carrier from going forward with an agreement that would end their pension plans.
The Association of Flight Attendants, which represents 20,000 workers at Chicago-based United, said Thursday in a statement that it will appeal the ruling.
U.S. District Judge Ellen Huvelle on Wednesday denied the union’s motion in Washington, saying the labor group didn’t meet standards for granting the relief.
The union, in seeking the injunction, argued that the U.S. Pension Benefit Guaranty Corp., which insures U.S. retirement plans, violated federal law by agreeing with UAL Corp.’s United to end the plans. Under the April agreement, the agency would take on $6.6 billion in pension liabilities from United’s four plans and receive $1.5 billion in securities. UAL wants to scrap the plans to help cut costs and exit bankruptcy protection.
United, the world’s second-largest airline, said the decision showed that the agreement is lawful and will meet the standard for ending a pension plan. The carrier has been negotiating new plans with unions that call for fixed contributions, rather than requiring set payments after retirement.
“We hope the AFA’s leadership will focus its energies on working with the company to craft a replacement retirement plan for its members rather than on litigation,” company spokeswoman Jean Medina said in an e-mailed statement.
