UAL says it wants to reach agreement with retirees over benefits

Washington, Jan. 14 - UAL Corp. said it wants to reach an agreement with its retirees on the costs of medical benefits. United Air Lines' parent said in order for the company to successfully emerge from bankruptcy retirees will have to shoulder more of the costs of their health insurance.

"This change will bring the medical benefits provided to current retirees more in line with those available to future retirees and offered by other large U.S. corporations. To this end, we will work to reach consensual agreement with our retiree representatives on changes to retiree medical benefits that are fair and equitable," said Peter McDonald, UAL's executive vice president of operations, in a press release.

The Chicago-based company wants to form a committee to represent certain groups of its retirees.

If it fails to reach an agreement, UAL said it will file a motion under Section 1114 of Chapter 11 with U.S. Bankruptcy Court for the Northern District of Illinois to modify its retiree health insurance.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.