UAL files emergency motion to appoint retiree committee

By Jeff Pines

Washington, Jan. 26 - UAL Corp. filed an emergency motion asking the U.S. Bankruptcy Court for the Northern District of Illinois to appoint a retiree committee.

The company wants the committee to represent its retired salaried and management employees, including retired pilots.

Earlier this month, UAL, United Air Lines' parent, said it needs to modify its retirees' medical benefits in order to successfully emerge from Chapter 11.

"Nearly all of United stakeholders, including current employees, have made significant sacrifices to ensure the company's financial future. United must now ask retirees to do the same," the company said in the filing.

Even with the modifications, UAL said retirees would continue to have generous benefits "unlike many other companies that have eliminated retiree benefits all together."

UAL said it is on the record since filing for Chapter 11 that it might need to modify retirees' benefits.

The company has been in touch with its retired pilots and salaried and management employees to ask which of them would be interested in serving on the committee.

In addition, UAL put a questionnaire on its public restructuring and internal websites.

UAL plans to file a motion by Feb. 2 listing all of the retirees who have volunteered to serve on the committee.

The emergency motion was filed Jan. 23.

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