Wednesday, September 06, 2006

Delta Screws Pilots, Feds Will Say O.K.

It a very disturbing trend over the past decade or more, a large corporation, in this case Delta Airlines, is being allowed to bail out on a promise to its employees. A judge has ruled that Delta can pass off its pension obligations to the Pension Benefit Guaranty Corp. (PBGC). Basically, the PBGC is the federal insurance for pension plans. If a company can't live up to its promise to pay a pension to its employees, then the PBGC is forced to shell out money -- taxpayer money -- to cover it, usually at a significantly reduced level. I'm all for the free enterprise system, but we need to start requiring that companies offering a pension fully fund those programs. Personally, I'm tired of watching CEO's live in multi-million dollar mansions while the workers who put them there get screwed because the company can't live up its obligations.

Judge OKs killing of Delta pilots pension plan

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