MILLER-SCHAKOWSKY-CROWLEY AMENDMENT TO SAVE UNITED WORKERS' PENSIONS PASSES HOUSE OF REPRESENTATIVES; AMENDMENT PROHIBITS THE PBGC FROM USING FUNDS TO TAKE OVER UNITED'S PENSION PLANS

Press Release

JUNE 24, 2005

MILLER-SCHAKOWSKY-CROWLEY AMENDMENT TO SAVE UNITED WORKERS' PENSIONS PASSES HOUSE OF REPRESENTATIVES

AMENDMENT PROHIBITS THE PBGC FROM USING FUNDS TO TAKE OVER UNITED'S PENSION PLANS

WASHINGTON, DC -- U.S. Representative Jan Schakowsky (D-IL), Chief Deputy Whip, today joined her colleagues Representative George Miller (D-CA) and Representative Joseph Crowley (D-NY) in offering an amendment to the Labor-HHS-Education Appropriations bill that would prohibit the Pension Benefit Guaranty Corporation from taking over all four pension plans in one fell swoop. The amendment passed the House of Representatives by a vote of 219-185, with all Democrats present and 31 Republicans voting in favor of its passage. This is the latest attempt by Representative Schakowsky to restore retirement security for United's employees. Representative Schakowsky has also co-sponsored three bills this Congress to protect workers' pension plans.

In response to the amendment's passage, Representative Schakowsky released the following statement:

"Today's vote demonstrates overwhelming, bipartisan support for United's workers and is a first step in the effort to restore pension security to thousands of families across Chicago and the nation. As United moves out of bankruptcy protection, we must not only ensure that United keeps flying, but that workers' jobs and pensions are protected. Congress must now find an acceptable solution to the pension crisis facing United's workers. United's employees have worked hard, planned ahead, and played by the rules, and they deserve nothing less than the full pension they earned."

The full text of Representative Schakowsky's floor statement in support of the amendment is below:

"Mr. Speaker, I rise today with my colleagues, Representatives Miller and Crowley, to offer an amendment that would protect the retirement security of dedicated United Airline employees and retirees who support our amendment."

"Our amendment would stop the Pension Benefit Guaranty Corporation from taking over United's four pension plans in one fell swoop. Our amendment would give Congress a chance to work out a better solution than pension termination."

"I urge my colleagues to support this amendment because the threat to United's employees is real. This is not a straight handoff from United to the PBGC. Although United's pension liability is $9.8 billion, the PBGC is only assuming $6.6 billion of the debt to United's workers. The takeover of the plans will result in pension benefit cuts averaging 25 to 50 percent - a loss of $3.2 billion for men and women who have worked for years with the promise of a secure pension. And, it is on top of the $3 billion in concessions United employees already made."

"We are on the cusp of a pension crisis in this country. The PBGC without United has a $23 billion deficit, and other companies are waiting in line to dump their pension benefits. I urge my colleagues to support this measure."