Company asks judge to stop union’s pension plan suits

Tuesday, Aug. 3, 2004 | 9:07 a.m.

UAL Corp., the parent company of the world's second-largest air carrier, asked a bankruptcy court judge to halt pension lawsuits by the International Association of Machinists as the company reorganizes.

The union filed suits in New Jersey and Illinois protesting the company's decision to halt contributions to its employee pension plans while in bankruptcy reorganization. The union represents 27,000 bag handlers, customer-service agents and other workers at United.

"Prosecution of the IAM's lawsuits during the course of these Chapter 11 cases is entirely unnecessary and will clearly disrupt United's reorganization efforts," UAL said in a complaint filed with the bankruptcy court in Chicago yesterday. It called the union's lawsuits "baseless."

UAL said last month it wouldn't make $568 million in further pension contributions this year because the Chicago-based company needs to cut costs to attract financing to help it exit bankruptcy.

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