US Airways and its pilots' union have reached a tentative agreement that would cut $465 million a year from the pilots' wages and benefits, the airline and the union said yesterday.þþThe agreement was reached last Wednesday but not made public until yesterday, when it appeared that the two sides were likely to iron out a few remaining issues, a union spokesman, Roy Freundlich, said. Although agreement was reached to cut $465 million a year over six and a half years, the proposed deal will not be sent to the pilots' membership for approval, he said, until negotiators work out provisions related to job security and other employee compensation, like stock options.þþÿThe $465 million represents a tremendous contribution by the pilots,ÿ said Mr. Freundlich, whose union represents 4,800 workers. ÿWe're the largest participants in their restructuring plan by far.ÿþþThe savings from the pilots are a critical element of the carrier's restructuring plan. US Airways has submitted the plan, which calls for reducing labor costs by $950 million a year, as part of an application for a $900 million federal loan guarantee.þþAn agreement with the pilots and other unions would presumably be offered as evidence that US Airways is trying to become profitable and will have a chance of repaying a $1 billion loan it wants to obtain.þþThe airline, hard hit by the attacks of Sept. 11, reported a loss of $269 million last quarter and $2 billion last year.þþÿWe need the cooperation and participation of all of our employee groups, and we continue to negotiate with those with whom we want to reach an agreement,ÿ Christopher L. Chiames, the senior vice president for corporate affairs, said yesterday.þþThe carrier had originally asked the pilots for $595 million in annual cuts over seven and a half years.þþThe pilots have also agreed to let US Airways increase its number of regional jets to 465. These smaller planes, which are cheaper to operate than longer-range aircraft, are considered crucial to the restructuring plan because they can be used in flying new routes. In return, the airline's regional jet subsidiaries will hire some of the 1,070 pilots now on furlough, Mr. Freundlich said.þþLast week, the flight attendants' union reached a tentative agreement to cut $77 million a year in costs through 2008. Yesterday, the machinists' union said it was still in talks with the carrier. ÿOur negotiators do not feel that any type of agreement is imminent,ÿ a spokesman, Joe Tiberi, said. US Airways initially asked the union for $261 million in annual cuts.þ
Source: NY Times
