Viewing page 28 of 200

This transcription has been completed. Contact us with corrections.

-27-

Although one of the laws was declared unconstitutional by the Supreme Court, the railroads were finally willing to recognize the realities of the situation and join with the railroad labor organizations in working out a mutually agreeable plan which was enacted by Congress into a third set of laws.

Unfortunately, the railroads seem not to have learned a permanent lesson from this experience, and improvements in the retirement system have been made over continued railroad objections.  But, it still remains true that once the laws have been passed, the retirement problems in the railroad industry have been worked out jointly by management and labor.  Except for a contribution of the government with respect to military service of railroad workers, the system is wholly supported by the industry -- fifty percent by the employers and fifty percent by the employees.

Finally, it can be said with respect to the railroad retirement system that it seems, in a substantial measure, to have produced economies offsetting the extra costs on railroad employers.  We are aware that the railroads do not admit that this is so, yet I think anyone who reviews the testimony of the Chairman of the Railroad Retirement Board on the Amendments to the Railroad Retirement Act enacted in 1946, would be impressed with the contention made by him that the railroad retirement system has not added substantially to the net cost of railroad operations.

A leaf could well be taken out of the railroad retirement history. I shall refer to that history again before I am through.  The main point which we wish to make here is that, just as in the railroad history, the retirement problem for pilots is a problem for the air line industry.  And just as the workers bear half of the cost of the railroad retirement system, the pilots stand ready to pay half of the cost of any rational pilots' retirement system.

IV.  Employer Action on the Retirement Problem Has Been Limited.

It would be unfair to say that the air lines have been altogether unaware of the problems of pilot retirement.  Five American air line companies have established retirement systems beginning with United Air Lines in January, 1941, Pan America in March, 1941; American in October, 1941; Braniff on June 30, 1943; and Eastern on October 1, 1947.

Of the 22 American air lines (Panagra is included in this category), only 5 have adopted any form of retirement system.  The companies which have retirement systems are the larger ones -- but half of the pilots are employed by companies which are making no provisions of any kind for pilots' incomes after retirement -- or, for that matter, any other employees.