United eyes decision on pension plans' fate

CHICAGO -- United Airlines hopes to complete a new business plan within two months, including a decision on whether to terminate its pension plans, the company told employees yesterday.

The statement came as part of a ''pension primer" letting employees know what would happen if it replaced its current pension plans with another retirement plan, such as a 401(k).

It also came a day after the bankrupt airline objected to one union's motion asking the court to appoint a trustee to take control of the company.

''The motion should be summarily denied and a clear message sent to all parties that cooperation in these proceedings is not to be a one-way street," United said in a court filing Tuesday that became available yesterday.

The filing accuses the International Association of Machinists and Aerospace Workers of instigating ''a hornet's nest of litigation" to force United to make payments to its pension plans, which the government estimates are underfunded by more than $8 billion and which the company has said it ''likely" will terminate.

In August, US Bankruptcy Judge Eugene Wedoff warned United management that it needed to improve communication with its unions and others, or he would allow other parties to bid for control of the carrier.

Wedoff is scheduled to make that decision, as well as hear two motions for appointment of a trustee, on Oct. 15. United has not yet filed a response to the flight attendants union's motion for a trustee.