US Airways Pilots Return
To the Negotiating Table
By ELIZABETH SOUDER
DOW JONES NEWSWIRES
September 11, 2004 9:25 a.m.
NEW YORK -- The union representing pilots flying for US Airways Group Inc. agreed late Friday to reopen contract negotiations after managers presented a new proposal, giving the airline a chance to avoid another bankruptcy filing.
While the union leaders met on Friday to consider the previous proposal, which failed to gain enough support to be put to a ratification vote, the union received the new one. The Arlington, Va.-based airline also sent a new proposal to the flight attendants union.
The pilot negotiators could begin meeting with airline managers again Saturday.
"We are prepared to respond quickly to the company's latest proposal and look forward to continuing our commitment to reaching an agreement that not only meets the challenges of the transformation plan but also addresses the needs of our membership," the pilots said in a statement.
A spokesman for the flight attendants said the union had received the proposal and may be ready to respond on Monday. A quick response is imperative to prevent another bankruptcy filing by the airline, US Airways Chief Executive Bruce Lakefield has said.
This month, several debt payments and reviews take place that hinge on the airline cutting cheaper labor contracts with its five unions. US Airways has said it wants to cut $800 million from labor costs. Already on Wednesday a $110 million pension payment comes due that could drain necessary cash for operating in the weak winter months.
The new proposals would keep salaries close to current levels, but increase the number of hours employees work and shift other work rules to put the airline's employees on more equal footing with workers at low-cost carriers, the airline said.
Mr. Lakefield said he has received hundreds of e-mails in the past week from pilots that would prefer cost cuts that balance salary, benefit and work-rule concessions, rather than tipping disproportionately toward one of those areas.