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US Airways unions object to disclosure statement
By Caroline Salls
Pittsburgh, Aug. 3 - US Airways, Inc.'s amended disclosure statement related to its plan of reorganization drew objections from the airline pilots, flight attendants and communications workers unions, according to Tuesday and Wednesday filings with the U.S. Bankruptcy Court for the Eastern District of Virginia.
The Air Line Pilots Association, International and communications workers union said the disclosure statement does not review how the company intends to terminate or modify contractual obligations under their collective bargaining agreements in the absence of a consensual resolution, any risks to whatever approach the company intends to use to terminate or modify the contracts, the fact that the unions will object to confirmation in the absence of a consensual resolution and the consequences if US Airways seeks relief from the contractual obligations.
The flight attendants' union said the plan seeks to unilaterally amend their collective bargaining agreement, which is not allowed under bankruptcy law.
The flight attendants said under the plan the company intends to break the terms of the collective bargaining agreement, including that it does not contain the profit sharing plan that is part of the collective bargaining agreement, eliminates the attendants' choice between profit sharing and equity participation in the reorganized company and does not live up to its contractual obligation to allow the flight attendants union a seat on the board of directors.
A hearing on approval of the disclosure statement is scheduled for Aug. 9.
US Airways, an Arlington, Va.-based carrier, filed for bankruptcy on Sept. 12, 2004. Its Chapter 11 case number is 04-13819.
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