Decision 2004
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US Airways, TWU reach contract deal
By Carla Mozee, CBS MarketWatch
Last Update: 5:25 PM ET Sept. 26, 2004
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SAN FRANCISCO (CBS.MW) -- US Airways said Sunday it has reached a contract agreement with one of its smallest unions, Transport Workers Union Local 547.
US Airways (UAIRQ: news, chart, profile) said the contract covers about 65 flight crew training instructors. The airline did not release details of the agreement with the group, based in Coraopolis, Pa.
"While these actions are very difficult for us, we recognize that our livelihood depends on the successful restructuring of this airline,' said Bill Gray, president of the Transport Workers union Local 547, in a statement.
US Airways, based in Arlington, Va., said it expects the contract to be ratified in two weeks.
The contract agreement comes on the heels of the bankrupt carrier's action on Friday evening, when it filed a court motion seeking permission to make pay cuts of about $38 million a month, saying that the move is necessary to preserve about 34,000 jobs.
US Airways filed the motion in U.S. Bankruptcy Court for the Eastern District of Virginia, to receive interim relief from its collective bargaining agreements with the Air Line Pilots Association, the Association of Flight Attendants, Communications Workers of America, the International Association of Machinists and Aerospace Workers, and certain units of the Transport Workers of America.
The filing came after the unions refused further concessions.
Joseph Tiberi, a spokesman for the International Association of Machinists and Aerospace Workers, said Sunday that US Airways' contract with the Transport Workers Union doesn't put any pressure on his association or affect its discussions with the company.
Tiberi said his group has asked US Airways for additional information about its motion seeking pay cuts.
"Our members alone provided $1.5 billion dollars to finance the last bankruptcy, so there's a lot of uneasiness," Tiberi said.
Representatives of the pilots and flight attendants unions plan to oppose the emergency motion filed under Section 1113 (e) of federal bankruptcy law. The airline's unions had conceded billions of dollars in wages and benefits during the airline's previous bankruptcy.
The agreement with Local 547 still needs approval from the bankruptcy court, said US Airways. The airline said Sunday it was continuing with meetings with the unions.
Shares of US Airways fell 3 cents on Friday to close at 71 cents.
