[Congressional Record Volume 151, Number 74 (Tuesday, June 7, 2005)]
[House]
[Pages H4160-H4161]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        HEARING FROM AMERICA ON UNITED AIRLINES PENSION COLLAPSE

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California (Mr. George Miller) is recognized for 5 
minutes.
  Mr. GEORGE MILLER of California. Mr. Speaker, Congress needs to hear 
from America about the severe loss of private pensions. Tonight, I 
would like to share with my colleagues some of the testimony my 
Democratic colleagues and I have received through the first-ever 
congressional E-hearing.
  It is clear from United Airlines' attempt to dump $6.6 billion onto 
the Federal pension agency known as the Pension Benefit Guarantee 
Corporation and to cut over $3 billion in pension benefits from its 
employees that the Federal pension laws are seriously broken.
  Like United, other large companies have also abused Federal law to 
terminate their employees' pension plans and to deeply reduce the 
retirement security that hard-working Americans had every right to 
expect to have. These runaway pension terminations threaten employees, 
investors and taxpayers.
  In the case of United, if it is allowed to dump all of its pension 
obligations onto the Federal Government, then its competitor airlines 
will seek to do the same. This is a real crisis, and it demands action. 
This crisis is about hard-working employees who in many cases will lose 
half or even more than half of the nest egg promised by their 
employers.
  United failed to put away enough for the hard times, but it is the 
employees and taxpayers that are suffering the consequences. Congress 
needs to hear from United employees and from other Americans suffering 
from the collapse of private pension plans.
  But, as with so many other important pocketbook issues, this 
Congress, under the Republican leadership, does not listen. It does not 
afford average Americans an opportunity to be heard.
  Democrats are listening, and we want to hear from America.
  To do that, my Democratic colleagues and I on the Committee on 
Education and the Workforce, and also with the gentlewoman from 
Illinois (Ms. Schakowsky), held the first-ever congressional E-hearing. 
We set up an online forum to hear from experts on the United pension 
crisis and from the employees and the retirees themselves.
  The response has been overwhelming. We have received some 2,000 
heartbreaking e-mails. These statements demonstrate what a real crisis 
looks like. I want to share with my colleagues and the public some of 
these e-mails. On my Web site you can read all of the testimony at 
house.gov/georgemiller.
  Here is the testimony of Mynette Wijnveldt, of Mililani, Hawaii, who 
writes: ``My husband and I were both employed as United Airlines flight 
attendants for 27 years. In 2001, he was diagnosed with a rare illness 
and became totally disabled. At age 50, he had to medically retire 
because he was no longer able to work. While I am still employed by 
United, I am seriously concerned about our future.
  ``If United is allowed to dump this pension our family will be hit 
very hard. My husband's medical retirement was severely reduced due to 
the early retirement factors, and I have lost 35 to 40 percent because 
of cuts in the plans resulting from the negotiated changes to our 
contract.
  ``If United is able to dump our pensions on the PBGC and walk away 
from its promise, we stand to lose our home and I will be working until 
I can no longer do so.''
  Here is another testimony, from Proctor Lucius in Carlsbad, 
California: ``I sit in jeopardy of losing over 70 percent of my monthly 
income and with financial obligations not only for my immediate family 
but assisted living care for my elderly mother. Our future is very 
ominously bleak. As you are well aware, the costs for everything, 
especially medical care, are increasing astronomically and Social 
Security is pitifully inadequate to compensate. Now Social Security is 
in jeopardy of being thrown into the giant casino of Wall Street. Where 
does it end?''
  Mrs. E.L. Smith of Hanover, Pennsylvania, wrote: ``My husband is a 
retired United Airline pilot with 33 years of loyal service to the 
company. He also is a two-tour veteran of the Vietnam War with service 
to his country. I am a second generation, former United Airlines 
customer service employee. We have an 18-year-old son starting college 
and a 9-year-old daughter. The loss of my husband's pension will be 
very difficult for our family, but the loss of medical care will 
cripple us. Many retirees are in this position, and due to preexisting 
medical conditions, they will not be able to afford coverage.

[[Page H4161]]

  ``It is frightening to know that the company that has been the 
backdrop of our lives for decades would do this to us. For many, this 
is a life-threatening situation.
  ``My husband was diagnosed with renal cell carcinoma and had a heart 
attack in 2002. I was diagnosed with cancer 2 years before that. We 
have significant out-of-pocket medical expenses at this time, and the 
pension loss will put us in a very precarious position. We will not be 
able to afford coverage. Please pass legislation to ensure that they do 
not terminate our pension.''
  These and many other statements, over 2,000, were submitted to our 
congressional E-hearing at the Committee on Education and Workforce. 
This is what a real crisis looks like. Now is the time for Congress to 
act. Now is the time to do that.
  I urge my colleagues to join me in passing H.R. 2327, a bill that 
would put a 6-month moratorium on the pension terminations currently 
planned by United Airlines. During this 6-month period, Congress must 
act to stop companies from unfairly dumping their pension losses. This 
will allow United and its employees to negotiate a solution through the 
collective bargaining process. We must not let these hard-working 
Americans down. We must listen to these Americans. We must understand 
the tragedy that has befallen them and the financial situations that 
they have been thrust into after a lifetime of hard work on behalf of 
United Airlines.

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