US Airways, flight attendants near deal on $94 million in cutbacks
Dec 16, 2004, 7:53 am
#1
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US Airways, flight attendants near deal on $94 million in cutbacks
If/when this happens.....we can stop worrying about a strike affecting travel plans. Actually, it's a key piece (with the machinists to follow) to the survival of US.
Thursday, December 16, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
After months of bargaining and the threat of a strike, negotiators for bankrupt US Airways and its flight attendants have agreed on how to save $94 million over the next five years, according to the union's president-elect.
But the proposal that would cut the flight attendants' pay by 10 percent is not a "tentative agreement" until it satisfies the union's Master Executive Council, which met to consider it yesterday. The council can send negotiators back to the bargaining table for more changes or call for a ratification vote by US Airways' 5,200 flight attendants.
US Airways says it needs $1 billion in concessions from all of its unions to survive. The company has asked a federal bankruptcy judge to throw out the contracts of the flight attendants, passenger service workers, baggage handlers and machinists absent consensual cost-cutting deals ratified by a majority of union members.
Last week, the flight attendants and the company were still $10 million apart. But yesterday flight attendants' president-elect Teddy Xidas said "we have met" the company's number of $94 million. The "proposal is not a good one, but it is where we are today," Xidas said.
The proposal includes a 10 percent pay cut but does not address the company's plan to eliminate the flight attendants' pension plan and cut retiree health care coverage. Those requests, worth another $63 million a year, will be dealt with later by U.S. Bankruptcy Court Judge Stephen Mitchell, who is overseeing US Airways' case.
Xidas, a member of the executive council, said a few "things" need to be clarified by the company in order for the council to sign off on any agreement, including how the carrier will handle employee furloughs. Also, Xidas said she is still hoping to get the pay cut below 10 percent. The executive council, she said, could discuss the agreement over the next few days.
Last night, a union spokeswoman said US Airways was still reviewing "our last proposal" and that the executive council was "waiting to hear back from management."
The flight attendants and passenger service workers have threatened to strike if the judge voids their contracts. But that threat could evaporate if rank-and-file flight attendants get the chance to approve a $94 million concessionary deal and if 6,000 passenger service workers agree next week to a $150 million agreement reached earlier this month by union negotiators.
That leaves the baggage handlers and machinists, who are being asked to give up about $100 million and $254 million, respectively. The company is asking to out-source much of their work, which would produce thousands of job losses. The baggage handlers union, hoping to avoid that fate, expects to give the company a written counterproposal this week that de-emphasizes the outsourcing in favor of other cuts.
The bankruptcy court hearing on the company's motion to void its union contracts continues today and is expected to wrap up tomorrow. The judge has said he may not rule until January.
Meanwhile, the Pension Benefit Guaranty Corp., has reversed an earlier position and now agrees that US Airways' financial condition is dire enough for the airline to justify the elimination its employee pension plans.
PBGC insures pension plans covering more than 44 million Americans, providing benefits to workers of distressed companies that terminate their plans. US Airways has asked the bankruptcy judge for permission to end pensions of 53,000 current and former workers.
Thursday, December 16, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
After months of bargaining and the threat of a strike, negotiators for bankrupt US Airways and its flight attendants have agreed on how to save $94 million over the next five years, according to the union's president-elect.
But the proposal that would cut the flight attendants' pay by 10 percent is not a "tentative agreement" until it satisfies the union's Master Executive Council, which met to consider it yesterday. The council can send negotiators back to the bargaining table for more changes or call for a ratification vote by US Airways' 5,200 flight attendants.
US Airways says it needs $1 billion in concessions from all of its unions to survive. The company has asked a federal bankruptcy judge to throw out the contracts of the flight attendants, passenger service workers, baggage handlers and machinists absent consensual cost-cutting deals ratified by a majority of union members.
Last week, the flight attendants and the company were still $10 million apart. But yesterday flight attendants' president-elect Teddy Xidas said "we have met" the company's number of $94 million. The "proposal is not a good one, but it is where we are today," Xidas said.
The proposal includes a 10 percent pay cut but does not address the company's plan to eliminate the flight attendants' pension plan and cut retiree health care coverage. Those requests, worth another $63 million a year, will be dealt with later by U.S. Bankruptcy Court Judge Stephen Mitchell, who is overseeing US Airways' case.
Xidas, a member of the executive council, said a few "things" need to be clarified by the company in order for the council to sign off on any agreement, including how the carrier will handle employee furloughs. Also, Xidas said she is still hoping to get the pay cut below 10 percent. The executive council, she said, could discuss the agreement over the next few days.
Last night, a union spokeswoman said US Airways was still reviewing "our last proposal" and that the executive council was "waiting to hear back from management."
The flight attendants and passenger service workers have threatened to strike if the judge voids their contracts. But that threat could evaporate if rank-and-file flight attendants get the chance to approve a $94 million concessionary deal and if 6,000 passenger service workers agree next week to a $150 million agreement reached earlier this month by union negotiators.
That leaves the baggage handlers and machinists, who are being asked to give up about $100 million and $254 million, respectively. The company is asking to out-source much of their work, which would produce thousands of job losses. The baggage handlers union, hoping to avoid that fate, expects to give the company a written counterproposal this week that de-emphasizes the outsourcing in favor of other cuts.
The bankruptcy court hearing on the company's motion to void its union contracts continues today and is expected to wrap up tomorrow. The judge has said he may not rule until January.
Meanwhile, the Pension Benefit Guaranty Corp., has reversed an earlier position and now agrees that US Airways' financial condition is dire enough for the airline to justify the elimination its employee pension plans.
PBGC insures pension plans covering more than 44 million Americans, providing benefits to workers of distressed companies that terminate their plans. US Airways has asked the bankruptcy judge for permission to end pensions of 53,000 current and former workers.
Dec 16, 2004, 9:12 am
#2
Join Date: Jun 2003
Location: ATL
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Wow! I think the most interesting news is that the PBGC seems to agree that US qualifies for a distress termination. I thought they were going to fight it tooth and nail.
On the FA news, does that mean that might trip to visit grandma on saturday will be OK?? No strike? What happens if they strike
On the FA news, does that mean that might trip to visit grandma on saturday will be OK?? No strike? What happens if they strike
Dec 16, 2004, 3:00 pm
#3
Original Poster
Join Date: Oct 2002
Location: Pittsburgh
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Posts: 983
There is a faint flicker of light at the end of the tunnel......finally. I hope that US can start making progress, not so much for FFers sake, but for the employees who have sacrificed so much. ^
