The pilots' union at US Airways said yesterday that it might be close to reaching an agreement on wage and benefit cuts that the struggling airline contends are necessary to avoid another bankruptcy filing. þþBut US Airways and the machinists' union traded angry words after the company dismissed a proposal that the union said would save the airline $115 million a year.þþUS Airways is pushing its unions for $800 million in concessions, on top of two rounds they granted while the airline was in bankruptcy. US Airways wants the cuts by Sept. 15, in advance of a crucial series of financial deadlines at the end of the month.þþThe airline wants pilots to grant $295 million in cuts, the largest share among its four leading unions. The concessions sought by the airline include wage cuts, slimmer pensions and changes in work rules. It also wants pilots to fly more hours each month, a move likely to lead to layoffs because fewer pilots would be needed.þþTalks continued yesterday on a counterproposal made by the Air Line Pilots Association, which represents pilots at US Airways. þþIn a statement on its Web site, the union said its bargainers were reviewing the financial details of the airline's latest offer. It said the leadership of the pilots union most likely would meet Friday in Arlington, Va., where the airline is based, to consider the outcome of those negotiations. þþIt said discussion of a tentative agreement ÿcould very well beÿ on the agenda and urged pilots to attend the meeting.þþThe council must approve any tentative deal before it can be presented to members for a vote. But the group is split on whether to grant concessions of the size the airline is seeking. þþUnion leaders from Philadelphia and Pittsburgh, who represent enough pilots to defeat a contract proposal, are particularly upset at the prospect of further reductions in retirement benefits, which shrank while the airline was in bankruptcy. Those two US Airways hubs are home base for hundreds of pilots. þþYesterday, US Airways said it was fully committed to working with the union to ÿbring these negotiations to a successful conclusion as quickly as possible.ÿþþBut US Airways is sparring with the International Association of Machinists and Aerospace Workers over proposals floated on Tuesday. The airline is seeking $174 million in annual cuts from the machinists' union, which represents the airline's mechanics.þþThe union has refused to reopen its contract, but it gave the company a list of suggestions that it said would save $115 million a year. The union said the airline could save money on spare parts and in its maintenance operations and could benefit from delegating more tasks to midlevel personnel. It did not offer to accept any cuts in wages or benefits. In a letter to the rank and file, the union said it was ÿinconceivableÿ that US Airways would ignore the ideas and risk a bankruptcy filing.þþUS Airways countered that the machinists' plan would actually cost it $500,000 a year in additional expenses. þþIn a statement, the airline said the machinists ÿmust come to grips with the fundamental fact that other union leaders have reluctantly but correctly concluded - the industry has changed forever.ÿþþIt went on, ÿThe airlines that will be successful will be those who transform their entire business and create a sustainable cost structure.ÿþþþþ
Source: NY Times
