Mr. Speaker, last night the gentlewoman from Illinois (Ms. Schakowsky) and I myself read into the Record statements that we have received from the employees and the retirees of United Airlines who were worried to death about the fact that…
Mr. Speaker, last night the gentlewoman from Illinois (Ms. Schakowsky) and I myself read into the Record statements that we have received from the employees and the retirees of United Airlines who were worried to death about the fact that their pensions are going to be severely cut as a result of United's decision to terminate their employee pension plans as part of its bankruptcy proceedings.
Tonight, we would like to again read many of the e-mails that we have received from these retirees and these employees outlining what the real human toll is of the actions of United Airlines and the inactions of this Congress to deal with this growing crisis in the American pension plans for workers.
As the Members will later hear, Mr. Speaker, some of these 2,000 people who responded to the first ever congressional E-hearing by my Democratic colleagues on the Committee on Education and the Workforce, through their ingenuity, we were able to extend an opportunity to these individuals to
be heard because there was no forum in this Congress for them to be heard. There was no forum that said that the average people who are being impacted by this policy will be heard. So we came up with the idea of having a congressional on-line E-hearing where the retirees and the employees of United Airlines could express directly to the Congress the concerns that these changes have made to them. I think these average Americans are beginning to notice and beginning to articulate the fact that this Congress has not dealt with these concerns, with the concerns that affect their daily lives.
So, Mr. Speaker, I would like to read an e-mail from Fred P. Euler from Santa Barbara, California. He writes to us in the e-mail: ``As a retired United Airlines pilot, I need your help to stop United Airlines from dumping our pension plan in the lap of the Pension Benefit Guarantee Corporation and possibly the taxpayers. The Retiree Pilot Pension Plan is adequately funded and should be paid by United Airlines, not the PBGC. The amount that the PBGC will pay out will have a devastating impact on thousands of retired pilots who devoted their careers to United Airlines and are now shocked, saddened and angry about the callous disregard displayed by United Airlines and the PBGC if it succeeds in seizing our pension plan. I am 69 years old with 32 years of service. It is estimated that my monthly loss will be about $2,000, which is over 30 percent of my pension.''
Jeanne Miller of Murrieta, California, writes: ``I am writing this in the hope it might save the termination of United Airlines pension plans . . . I worked as a dedicated flight attendant for over 33 years. I am a single mom with one child who has graduated from college, we are both still paying tuition, and a son who is in his first year of college. I retired reluctantly in June, 2003. United offered a deal to those flight attendants willing to retire early that was hard to resist: good medical benefits and a pension that was enough to support me and my son . . . Now they are threatening to take all of that away.'' Under the previous plan, she ``would have been able to be the caregiver for both of my parents, who are disabled and unable to live by themselves without care.
``If United turns over our pension to the PBGC, it will create a tremendous hardship.''
John Givens of Redondo Beach, California: ``I was a 36\1/2\-year employee who was forced into retirement when United closed my reservation office in Long Beach, California. My retirement was good enough that my wife, who is disabled, and I thought we could make it. We have raised seven children, two who are still in college. They work part time but will have to drop out because I will no longer be able to help them. I will lose approximately 55 percent of my pension due to the rules.''
Mr. Speaker, these are e-mails from United retirees and United employees who now see their economic future deeply clouded, deeply threatened by these actions by United. They see the fact that they worked hard for 30 years, for 33 years, for 36 years. There is no way now that they have retired where they can go and accumulate the necessary resources to have the retirement that they carefully planned for by their hard work on behalf of United Airlines. These are the people who are crying out for help before their retirement nest eggs are destroyed by the United Airlines.
The gentlewoman from Illinois (Ms. Schakowsky) and I have introduced legislation to put a 6-month moratorium to see whether or not the pilots, the machinists, and the others can negotiate with United to try to protect these individuals' retirement.
Mr. Speaker, the gentlewoman from Illinois (Ms. Schakowsky) joined me last night, and I yield to her tonight for her comments and for the letters that she has received through this e-mail hearing.
Mr. Speaker, reclaiming my time, I think the gentlewoman has raised a number of people who wrote her from Illinois, the retirees and employees of United raised this point, that it was actually the President that said what is good for the crew is good for the captain.
What we see here clearly is what so many of these employees recognize, and what we have watched now is company after company that terminates these employee pension plans, that go into bankruptcy, at the end of the day the company goes on, less these liabilities, and the very people who administered the company into the bankruptcy, their pensions in many cases were guaranteed, they were moved outside of bankruptcy, they were put into trusts, or as the company is reorganized, they then go back to issuing stock options for themselves, issuing bonuses, as if nothing happened.
Yet what we see here is tens of thousands of United employees who are left in the dust bin. Many of these people cannot go back to work. They cannot go back and accumulate a retirement nest egg again, and I think it is something we see run through all of our letters. I want to thank the gentlewoman for raising that point.
Reclaiming my time, time and again these employees have given back on retirement, have given back on wages, have given back on hours to keep this airline flying; and yet at the end of the day, the executives walk out to the new company and the employees are stuck without their retirement, without their health care benefit.
I now recognize my colleague, the gentleman from Massachusetts (Mr. Tierney), who was part of our e-hearing, the first-ever Congress e- hearing to provide this kind of access to ordinary Americans who are suffering the disaster, the personal disaster of the larger disaster of the United Airlines decision to go into bankruptcy and get rid of these pensions and health care plans.
Mr. Speaker, reclaiming my time, I thank the gentleman. Again, he has raised an important point. These employees of United Airlines, these employees for the last several years have worked with this company to give back part of their retirement, give back part of their health care, give back part of their wages, give back part of their hours, all the rest of it. They were struggling to stay in the middle class. These are good, middle- class jobs. They were struggling to stay in those jobs, to stay in the middle class with the assurance of that retirement.
Very often people think, well, the retirement is something you get at the end of your employment. The fact of the matter is, every hour of pay you have negotiated, you give something for retirement. You earn it on an hourly basis. Your employer decides how much they want to pay you and they figure in your benefits and all of the rest of it. It is a package.
Now, of course, here at the end, people after 30, 40 years, finding out that they have lost a huge percentage of their retirement and have no ability to replace it.
Mr. Speaker, reclaiming my time, over the last several years, the gentleman is quite correct, we have seen CEOs and other corporate officers who are retiring, and they have worked for the company for 3 years and they are given a retirement package as if they worked at that company for 23 years, if they worked at that company for 15 years. So they just make up the retirement package for the CEOs and they go on their way.
The CEOs that ran United into the ground here, that have destroyed this company, they get severance packages, they get golden parachutes, they go on their way. The employees who are left struggling trying to rebuild this airline to try to keep it competitive, they are the ones that take the slicing and the dicing of the loss of the pensions, the loss of the health care, the loss of the retirement.
Mr. Speaker, I thank the gentleman very much for participating in this.
I would like, before I recognize the gentleman from New York (Mr. Owens), to read one last letter that we have here tonight, and I will read others in the coming days, from Ann Clegg of San Francisco, California:
``I retired as a flight attendant from United Airlines in 2002 after 37 years of
service. I was promised a pension and quit at age 58 after carefully considering the money I would live on, and my pension was a big part of that. Now, with the threat of the reduction of my pension, obviously, my standard of living will be greatly reduced. I ask you, if there is anything good, right, and honest in this country, why is this happening? I worked and believed a promise that should be upheld by my company and the government. I would not have retired early had I known that United Airlines would be allowed to renege on its promise. This is wrong and shameful. Please help.''
The point is, again, these people upheld their end of the promise. The promise was between the employees and the company, the handshake was between the employees and the company, and that is why these people are so devastated when the company made the decision to go into bankruptcy and to discharge these pension obligations and their health care.
I know the gentlewoman from Illinois (Ms. Schakowsky) and I knew the gentleman from New York (Mr. Owens) and I know the gentleman from Massachusetts (Mr. Tierney) have read these letters.
So very often, these very same families that are losing their retirement income have serious health problems within their families, either their children, their spouse, their parents, who they are taking care of. Their own retirement benefits and their health care benefits for their family were very important to them, and now they are saddled with increasing health care costs, with a diminished health care plan, if any at all, and, obviously, a greatly diminished pension. So these people are really suffering a double hit by the actions of United.
We have written to our committee, the Committee on Education and the Workforce, for several years now, asking them to have hearings, asking them to look at this problem, asking them to look into the PBGC. Only today, as the Senate held its hearings, did people start talking about the loopholes.
We have known about those loopholes on the committee for years, to bring to everyone's attention how the pension plan was gamed, how the real figures are not disclosed to the employees, not disclosed to the investors, not disclosed to the public, the conditions of these pension plans. Only when it is too late are those disclosures made as the company enters into bankruptcy and there is very little the employees can do about that.
It is absolutely a scandal what has taken place here and the inaction of this Congress. Only now do we start to see them take action. But no inquiry before, no discussion of the problem, and even as we start to take this action we will not have the full information before us about the extent of this problem, and not just United Airlines but in major corporations all across the country.
I yield to the gentleman from Massachusetts.
Mr. Speaker, I just recently wrote to the chairman of the committee and, after reviewing that information that was given to us by the PBGC, I asked him, I think it is very important that the committee go ahead and have a vote and make this information public. Because, obviously, what we have seen is there is a huge disparity between what the public has been told of the pension problems of these companies and what the PBGC has been told in secret, out of the public eye, not for disclosure, what the real situation of these pension plans are.
So that we have millions of Americans who believe the conditions of their company's pension plan is one thing, and the company knows it is another. In many cases, as we wrote to the chairman and said, the difference is hundreds of millions of dollars and, in some cases, billions of dollars in terms of those liabilities. I think that those employees, when they see how this can happen with the United case, those employees are entitled to that information.
Interestingly enough, the President of the United States asked 4 years ago that this information be made public, but the companies are lobbying hard so it will not be made public, and, so far, the committee has not responded to our letter. But certainly before we begin writing a new pension bill we ought to have this information laid out on the public record so people can comment on it to see whether or not the bill that we are considering, the ideas that the President has will make this worse or make it better. I thank the gentleman for raising that point.
I would like at this time to recognize another member of the Committee on Education and the Workforce, a member of long standing of the Committee on Education and the Workforce who, in every session of this Congress, has taken on the responsibilities of this committee to look at these issues that confront working families in the workplace, in their health care, in their daily lives in the workplaces of America, and that is the gentleman from New York (Mr. Owens).
Mr. Speaker, I am going to yield the balance of our time to the gentleman from New York (Mr. Owens) for the purposes of this discussion and to read the communications from individuals from New York.
Mr. Speaker, I thank the gentleman for joining us tonight.