United Airlines retiree benefits to be investigated by examiner

New York, Feb. 20 - Bankruptcy court judge Eugene Wedoff supported a motion from United Airlines flight attendants to appoint an examiner to investigate the company's plan to change retiree medical benefits for workers who retired before July 1, 2003.

The court strongly encouraged the U.S. Trustee to appoint an examiner by Feb. 24 and the examiner will be required to report back to the bankruptcy court by March 19. The scope of the investigation aims to determine if United decided to use the bankruptcy code to pursue changes to retiree medical benefits prior to July 1, 2003, the flight attendants union the Association of Flight Attendants-CWA, AFL-CIO said.

The union said the date was significant because United established it as the retirement deadline by which an employee would have to retire to secure medical benefits. United had not notified retirees that it intended to pursue changes to these benefits prior to that date.

The flight attendants claim United intentionally misled thousands of workers into ending their careers or retiring early, defrauding them out of their retirement benefits.

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