Editorial: The Price of Losing Pension Indexing – And Why It Must Be Fought For Again

The other day, one of our members raised a topic that has been simmering under the surface for years: pension indexing—or rather, the lack of it. As everyone here knows, we lost indexing in our pension plan. Looking back, it remains one of the biggest mistakes ever made in bargaining.

One retiree shared his story: in 2004, he left the airline with a pension of $2,200 a month. At the time, it was enough to live on with dignity. But fast-forward to 2025—21 years later—and that same amount doesn’t stretch far at all. Without indexing to keep pace with inflation, the value of his pension has eroded year after year. What once provided security now barely covers the essentials.

The truth is, the unions of the day should never have agreed to surrender indexing in exchange for short-term gains in contract talks. It was, in effect, selling our future stability for a temporary fix. Yes, if you retire today, your combined pension and government benefits may allow you to get by for a while. But over time, without cost-of-living adjustments, retirees inevitably slide closer to the poverty line—locked into the same dollar figure for decades as expenses climb relentlessly.

Many of us gave our blood, sweat, and best working years to this airline, believing we were securing a retirement we could count on. A pension without indexing is a slow bleed—it takes away not in sudden blows, but in the quiet erosion of purchasing power, year after year.

Is it too late to fix this? Not if we have the will to fight for it. With upcoming Voluntary Separation Scheme (VSS) packages on the table and the potential of the share trust fund, there’s an opportunity for the unions to stand up for retirees. Whether it’s securing partial indexing, tying increases to inflation, or directing a portion of share trust funds into the pension plan, something must be done.

We cannot allow another generation of airline retirees to watch their pensions wither while costs skyrocket. We cannot be silent while years of loyalty are repaid with shrinking security. This is not charity—it’s justice.

The time to fight is now. Unions must put pension indexing back on the bargaining table, not as a side note, but as a core demand. Every retiree, every active member, and every union leader should be united on this: a pension is a promise, and a promise should last a lifetime—not just until the next grocery bill.