ARLINGTON, Va. (AP) -- US Airways employees represented by the Communications Workers of America reached agreement with the bankrupt airline for a second round of concessions, saying they feared it would shut down if they didn't acquiesce.þþEarlier this year, US Airways' 32,000 employees agreed to annual concessions of $840 million a year as part of a plan to cut costs by $1.2 billion a year.þþBut the airline later revised its plans, saying continued weakness in the industry required unions to make an additional $200 million in givebacks.þþLast week, the pilots' union agreed to $101 million more in annual concessions. On Wednesday the CWA, which represents about 8,000 reservations agents, gate workers and other passenger service employees, agreed to an unspecified amount of cuts. Based on previous cuts, though, the CWA's concessions Wednesday probably fall in the $15 million range.þþThe negotiations were particularly tense. At one point the union had warned its members that the airline was threatening liquidation if unions didn't reach agreement by Friday.þþOn Wednesday, union spokeswoman Candice Johnson said only that the agreement was reached ``under the threat of the potential loss of all members' jobs. It was pretty tough negotiating.''þþThe union said in a statement that the union had gained a seat on the board of directors and the opportunity for furloughed employees to pick up jobs in the lower-paying US Airways Express divisions in the negotiations.þþThe members will conclude voting to ratify the amended agreement Dec. 31.þþThe airline still must reach agreements with its flight attendants, machinists and Transport Workers Union by Friday to meet its self-imposed deadline of presenting a reorganization plan to the bankruptcy judge by Dec. 20.þþThe airline actually has until Jan. 31 to submit a plan to the judge, but airline spokesman David Castelveter said having a plan in place by Friday would allow the airline to meet its goal of emerging from bankruptcy by March.þþThe airline filed for Chapter 11 bankruptcy protection in August. In 2001, the airline lost $2.1 billion on revenue of $8.3 billion.þþIts pre-Sept. 11 work force of 46,000 has been reduced by nearly a third.þþCastelveter said it would be inappropriate to speculate on what would happen if the other unions did not reach agreement by Friday. On Tuesday the airline issued a statement that ``any discussion about alternatives to a successful reorganization is speculation not based on fact, and the continued support of our customers and the 200 communities we serve is critical to our success.''þ
Source: NY Times
