US Airways Union Says Labor Deal Is Near

08.19.2004

Union leaders representing US Airways pilots said Thursday that a new labor could be struck soon, telling their rank and file that a new deal is "our last opportunity to control the fate of our airline and our careers."

US Airways has said that new labor deals with unions are necessary to avoid a second trip into bankruptcy and probable liquidation. Though the airline has warned that bankruptcy looms if deals are not reached next by at least Sept. 30, progress has been slow.

A deal with the pilots would be the first significant step in US Airways' plans to cut costs by $1.5 billion a year, including cutting labor costs by $800 million.

The airline has sought $295 million a year in concessions from pilots. Management made a proposal Tuesday that union leaders are asking members to review carefully.

"It is by no means a final deal, but it will give you an idea of how management is now looking at many of the issues, and the alternatives, being discussed at the table," wrote Bill Pollock, chairman of the union's Master Executive Council. "Since a tentative agreement could be struck soon, its critical to remain informed."

Pollock's message did not discuss details of management's proposal, and union spokesman Jack Stephan could not immediately be reached for comment Thursday.

US Airways officials also did not immediately return phone calls.

Pollock also rebuked some members of his own master council for improperly dismissing the threat of liquidation.

"I know you've heard it before, but these negotiations are quite likely the most critical ones of our careers. This may very well be our last time at bat, our last opportunity to control the fate of our airline and our careers," Pollock said.

Generally, the pilots have been most receptive to renegotiating their contract. The pilots were also first to reach a new deal during US Airways' first trip into bankruptcy in 2002, when labor groups collectively made more than $1 billion a year in concessions.

A study commissioned by the pilots found earlier this month that a bankruptcy filing loomed as soon as mid-September unless management could implement reforms and cost savings.

US Airways is also seeking concessions from its flight attendants, machinists, and from the Communications Workers of America, which represents reservations agents and gate workers.

Last week, US Airways chief executive Bruce Lakefield said progress with the machinists was "nonexistent." Negotiations with the CWA are also expected to be particularly difficult, because those employees do not have the complicated work rules that provide more flexibility for negotiations with, say, the pilots or flight attendants.

Earlier this week, US Airways chairman David Bronner told reporters that if US Airways is forced to file for bankruptcy again, he expects the airline will have to liquidate rather than reorganize.

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