Hawker Union Members to Vote on Pension Plan Changes
WICHITA, Kan. - Machinists union members at Hawker Beechcraft will vote this week on proposed changes to their pension plan. It’s all a part of Hawker’s bankruptcy. The proposal machinists will vote on would prevent termination of the existing defined pension plan. But there would definitely be changes.
The machinists union and the company have been quietly negotiating this proposal, which will freeze the current pension at the end of the year. The pension would then change to a 401K contribution plan. "It's different than the current plan we have out there, which is a defined benefit plan,” says Machinists Union President Frank Molina, Jr. “Now what we're going to is a defined contribution."
Though different, Molina says. "It is a decent retirement program, and the rest of the retirement programs, the 401K's will still be in place," says Molina. "The termination of a defined benefit plan is a serious blow to active as well as retired employees," says Machinists Union Spokesman Frank Larkin.
And because that would be avoided, the union sees this as a positive development. Union leadership is recommending approval. Members will decide in a Friday morning vote at Hartman Arena.
Molina says if voted down, it could change everything. There’s speculation the door could be opened for an acquiring company to make other contract changes.
Hawker Union Members to Vote on Pension Plan Changes
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