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Reuters <http://money.excite.com/img/logo_reuters.gif> =09
US Airways mechanics reject restructuring proposal=20
=09
Thursday August 29, 2:07 AM EDT=20
WASHINGTON, Aug 29 (Reuters) - Mechanics at US Airways Group Inc (UAWGQ
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DUA=
WGQ
> ) rejected a proposal that would have cut some of their wages to help
bankrupt US Airways win full approval of a $900 million government loan
guarantee, their union said early on Thursday.
The carrier's baggage handlers accepted a separate proposal, which
included an eight percent pay cut. Those cuts will save the carrier
about $65 million a year, said Joseph Tiberi, spokesman for The
International Association of Machinists and Aerospace Workers (IAM).
IAM, which represents about 12,000 of the airline's mechanics and
baggage handlers, said 57 percent of mechanics rejected their proposal,
while 62 percent of baggage handlers accepted a separate but similar
one.
=20
<http://ae.excite.com/adclick/CID=3D000002397d9372bc00000000/acc_random=3D=
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21694658/site=3Dexcite.reuters/area=3Dmoney.news/aamsz=3D336x280> =09
US Airways, the sixth-largest U.S. airline, has said it needed hefty
wage cuts and other sacrifices from employees to speed up its
restructuring under bankruptcy and win government-backed financing.
The carrier has reached tentative labor agreements with its pilots,
flight attendants, and other smaller groups of unionized workers
totaling more than $560 million in annual cost savings.
Tiberi said baggage handlers accepted about 85 percent of the cost cuts
US Airways asked for earlier this year. That level is similar to what
the airline's pilots and flight attendants have agreed to.=20
=A92002 Reuters Limited.=20
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