United Airlines hit with lawsuit over pension payments

0 Comments | AFP, July, 2004

CHICAGO (AFP) — United Airlines' machinist union hit three of the carrier's top executives with a lawsuit in connection with their decision to suspend payments to employee pension funds.

The complaint filed in federal court in Chicago charges the carrier's chief executive officer Glenn Tilton, chief financial officer Jake Brace and chief operating officer Peter McDonald with breaching their fiduciary duties.

"As fiduciaries of the pension plans, the defendants had a responsibility to compel United to meet its funding obligations," said Robert Roach, the union's vice president of transportation, in a statement.

"Clearly, they failed. The IAM has a responsibility to utilize all possible measures to protect the interests of our members. We will not fail."...