US Airways management retention plan opposed by communications workers union

By Caroline Salls

Pittsburgh, May 19 - US Airways, Inc.'s motion for a management retention program drew objection from the Communications Workers of America, AFL-CIO, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The union said US Airways is seeking approval of officer employment contracts and severance and retention policies for salaried employees on the possibility of a merger with America West Holdings Corp.

According to the objection, the management retention plan "potentially exposes [US Airways'] estate to $55 million in administrative expenses."

Accompanying the objection were petitions signed by 2,209 US Airways employees "expressing their outrage at the greed and hypocrisy of a management team that has used the Bankruptcy Code and the authority of this court to slash the pay and benefits of rank-and-file workers and now seeks to use them to enrich themselves."

The union said the plan is unfair and unreasonable because the company did not consult the union during its formulation.

Also, the union said the plan is unnecessary because there is no reason to believe that salaries of employees who have stayed with the company "when threats of liquidation more darkly clouded the horizon" would leave now when the company's future appears brighter.

The Arlington, Va.-based carrier filed for bankruptcy on Sept. 12, 2004. Its Chapter 11 case number is 04-13819.

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