US Airways asks mechanics for 7 pct wage cut-union

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US Airways asks mechanics for 7 pct wage cut-union  =

 =


Thursday August 15, 3:43 PM EDT =


ARLINGTON, Va., Aug 15 (Reuters) - Bankrupt air carrier US Airways Group =
Inc. (UAWGQ) has asked its mechanics to absorb an initial wage cut of nea=
rly 7 percent to help lighten costs and boost its chances of getting gove=
rnment-backed loans, the mechanics' union said on Thursday.

Mechanics and similar workers who earn more than $14.42 an hour at Arling=
ton, Virginia-based US Airways would take a 6.8 percent wage cut up front=
, according to a US Airways proposal revealed by the International Associ=
ation of Machinists on Thursday.

Workers who are paid less, mostly the airline's newer utility staffers an=
d stock clerks, would have their wages temporarily frozen.

US Airways is seeking hefty wage cuts and other concessions from its empl=
oyees in order to speed its restructuring under bankruptcy and gain full =
approval for $900 million in federal backing on a $1 billion loan.

  =


The government's Air Transportation Stabilization Board, which was set af=
ter Sept. 11 up to assist faltering airlines, granted US Airways conditio=
nal approval for the loan guarantee last month, but said more sacrifices =
from its workers were necessary.

US Airways spokesman David Castelveter stressed the need to seal deals wi=
th labor unions quickly, and said that the airline would ask a bankruptcy=
 court judge tomorrow to set August 30 as the date by which contracts mus=
t be ratified if they're going to be granted protection during bankruptcy=
=2E

"We need to have this done as soon as possible," Castelveter said.

US Airways, the sixth-largest U.S. airline, has already sealed about $550=
 million in annual cost reductions through deals with its pilots and flig=
ht attendants.

According to the six and a half-year plan that representatives for 6,800 =
mechanics received on Sunday, US Airways proposed eliminating the furloug=
h protections currently in place for the workers, but said it would commi=
t to keeping at least 245 planes in its mainline fleet.

It also would trim a week of vacation and cut some holidays and sick days=
=2E

But the proposal would grant the IAM one seat on US Airways' board, and w=
ould let it participate on the airline's advisory board. =



=A92002 Reuters Limited. =


Roger
EWROPS

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