www.mozilla.com Weather Central
Voices
Headlines

Kan. GOP senators not budging much on sales tax -5/17/2013, 4:37 PM

Burlington Coat Factory shooter gets work release -5/17/2013, 4:37 PM

OSHA rules for whistleblower at Kan. nuclear plant -5/17/2013, 3:43 PM

Kansas unemployment rate drops slightly in April -5/17/2013, 3:43 PM

Kan. moves to enact law on lobbying on gun issues -5/17/2013, 3:43 PM

Kansas budget negotiations abruptly halted -5/17/2013, 2:40 PM

Kansas AG to lead prosecution in Ottawa deaths -5/17/2013, 2:40 PM

Suspect in double fatal won't face death penalty -5/17/2013, 7:37 AM

Kan. lawmakers' talks on budget issues to resume -5/17/2013, 7:37 AM

Top Kan. Dem: Staffer faces discipline over tweets -5/17/2013, 6:43 AM

1st Infantry Division to change command -5/17/2013, 6:42 AM

Kan. bondsman accused of sex crimes against women -5/17/2013, 6:36 AM

EPA honors KSU dining hall composting program -5/17/2013, 6:36 AM

myTown Calendar

SPOTLIGHT
[var top_story_head]

Union fights Hawker Beechcraft executive bonuses

Published on -7/26/2012, 7:29 AM

Printer-friendly version
E-Mail This Story

WICHITA, Kan. (AP) -- A machinists union urged a bankruptcy judge Wednesday to consider the "complete irony and hypocrisy" of Hawker Beechcraft's request to pay eight top executives more than $5.3 million in bonuses while other jobs are cut and the company seeks to eliminate pension plans.

The International Association of Machinists and Aerospace Workers filed the formal objection in federal bankruptcy court in New York. A hearing is scheduled Thursday for the judge to consider the bonus request from the Kansas-based airplane maker.

Union officials also oppose an additional $1.9 million in bonuses sought for 31 other management-level employees.

The Justice Department's bankruptcy watchdog agency, the U.S. Trustee Program, has also challenged the bonuses.

Hawker Beechcraft contends the bonus plan recognizes the critical role of certain employees in the bankruptcy process. The company says retaining those executives is crucial to its ongoing business and bankruptcy restructuring.

But the machinists union argues in its court filing that the proposed payouts are "unnecessary, excessive and unreasonable." It questioned why company executives should be paid up to 200 percent of their base salaries as a bonus during the bankruptcy while the company pays a $10 million restructuring fee to an investment banking and financial services firm for the work.

Hawker Beechcraft is seeking "to unfairly discriminate in favor of certain high level employees at the expense of their rank-and-file employees," according to the filing. "Providing certain employees with excessive, easy to reach bonuses, while simultaneously seeking (to) eliminate jobs and reduce pension obligations to others, is certainly not fair and reasonable."

Hawker Beechcraft Corp., based in Wichita, is owned by Onex Partners and GS Capital Partners, a Goldman Sachs private equity fund. The company filed for bankruptcy protection in May. The court has approved exclusive talks with a Chinese firm that has offered nearly $1.8 billion to purchase the company's business jet and general aviation operations.

digg delicious facebook stumbleupon google Newsvine
More News and Photos

Associated Press Videos

View this site in another language.