United Airlines Machinists' Union Sues Over Pensions Thursday July 29, 12:44 PM EDT CHICAGO (AP)--The union representing United Airlines ramp workers and customer-service agents sued the company's top executives in federal court Thursday over their decision to halt contributions to its employee pension funds while United remains in bankruptcy. The International Association of Machinists and Aerospace Workers accuses the top UAL Corp. (UALAQ) officials of a breach of fiduciary duty in connection with the pension decision announced last week. The lawsuit, filed in U.S. District Court, is the latest development in a fast-escalating controversy over United's action, which it said was necessary in order to conserve cash and more easily attract the exit financing needed to emerge from bankruptcy. Managers of the airline also were meeting Thursday in Washington with the Pension Benefit Guaranty Corp., which sent United CEO Glenn Tilton a warning letter earlier this week calling its decision to stop contributions " inconsistent" with pension and tax laws and demanding more information. The IAM suit names Tilton along with chief financial officer Jake Brace and chief operating officer Pete McDonald along with the airline's pensions and welfare plans committee. The executives were behind last week's decision in advance of a meeting of United's board, which was under way Thursday. It seeks the amount United owes the pension plans plus a court order that they carry out the funding obligation. "As fiduciaries of the pension plans, the defendants had a responsibility to compel United to meet its funding obligations," said Robert Roach Jr., general vice president of transportation for the IAM, which represents more than 20,000 current United employees. "Clearly, they failed." "United Airlines must get the message that they cannot abandon employee benefits at will," said IAM District 141 president Randy Canale. "They will not be allowed to continue their slash-and-burn approach to restructuring without realizing serious consequences." United spokeswoman Jean Medina said the airline had just seen the lawsuit and would issue a comment later. On the Net: www.united.com Roger EWROPS