U.S. Airways gets Oct. 26 hearing on amending labor pacts

By Jeff Pines

Washington, Oct. 19 - A hearing on amending U.S. Airways Group Inc.'s labor pacts with the Air Line Pilots Association and groups within the Transport Workers Union is scheduled for Oct. 26, according to a Tuesday notice filed with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The airline says it needs the agreements approved in order to save money and compete more effectively with low-cost carriers.

The agreement with the pilots calls for $300 million in cost savings for 2005 with pilots taking an 18% pay cut and significant changes to vacation and sick leave, U.S. Airways said. Other changes include eliminating company-paid post-retiree medical insurance for future retirees, profit sharing for the pilots subject to agreement, and a proposed equity stake in the reorganized company. If the agreement is approved, the airline will make the unpaid pre-petition contributions to the pilots' pension plan.

The Transport Workers Union agreement calls for the company to make previously withheld payments to the group's defined contribution retirement and 401(k) plans. In return, the union members will take cuts in pay and benefits and modifications in their work rules. Among the members of this union are the flight simulator engineers, flight crew training instructors and dispatchers.

U.S. Airways, based in Arlington, Va., filed for bankruptcy on Sept. 12. Its Chapter 11 case number is 04-13819.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.