The International Association of Machinists and Aerospace Workers, meanwhile, says the court on Jan. 31 approved a settlement that preserves its pension plan with the company. Hawker Beechcraft had reached a settlement with the Pension Benefit Guaranty Corp. to retain the pension plan with IAM workers, but to drop its other two plans that covered non-unionized and customer support professionals. Under the settlement, the PBGC will take over the remaining two plans.
IAM says that the union worked with Hawker Beechcraft to negotiate a new defined contribution pension plan while guaranteeing the existing plans.
“Preventing the termination of a defined benefit pension for thousands of active and retired workers at a bankrupt company is a remarkable, but all too infrequent outcome,” says IAM President Tom Buffenbarger. “It is a credit to both sides of the bargaining table that workers’ interests at Hawker were given the respect they deserve.”