US Airways pilots' union objects to severance and retention plan

By Caroline Salls

Pittsburgh, May 25 - US Airways, Inc.'s proposed transaction retention program drew objection from The Air Line Pilots Association, International, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The proposed program includes officer employment contracts and severance and retention policies for salaried employees and was created in anticipation of the newly announced merger agreement between US Airways and America West Holdings Corp.

The pilots union said the proposal leaves bargaining unit employees with the severance provided in their collective bargaining agreements, which, according to bankruptcy law, may not be entitled to administrative priority in a shutdown.

The pilots said US Airways also wants to expand the circumstances under which severance is provided for salaried and executive employees and to elevate that severance to administrative priority status.

"This attempt to create two classes of US Airways employees for purposes of severance is unjustified and grossly inequitable," the union said in the filing.

"These inequities are further exacerbated by [US Airways'] proposal that a few executives retain retiree health insurance in the face of loss of such coverage by all of the thousands of other US Airways employees."

A hearing on the retention plan is scheduled for May 31.

The Arlington, Va.-based airline 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.