12/11/2002 - Updated 11:39 PM ET US Airways, pilots discuss cost cuts By Barbara De Lollis, USA TODAY US Airways took a step Wednesday toward shaving an additional $200 million= =20 a year from its labor costs, a move designed to protect its government loan= =20 guarantee and its chances to survive. The airline's pilots, who are being=20 asked to provide half the savings, reached a tentative agreement to reduce= =20 pension benefits, change some work rules and cut wages temporarily. The=20 company did not ask for the wage reduction =97 the pilots already have= agreed=20 to $465 million in yearly wage and benefit cuts for 6 1/2 years. But the=20 union volunteered the cuts to avoid more layoffs. In exchange, the airline= =20 agreed to raise the minimum number of large jets in its fleet from 245 to=20 279. The pilots' agreement is vital to the carrier, which filed for Chapter= =20 11 bankruptcy protection Aug. 11, because it could help influence other=20 labor groups, which are reluctant to consider more concessions. "The pilots= =20 are the leaders of the airline," says Jerry Glass, the airline's senior=20 vice president for employee relations. "Their stepping up to the plate and= =20 making this very significant deal with us really creates a lot of momentum." The airline has already cut annual costs by $1.3 billion, with about $850=20 million of that coming from employees. But management says it needs more because the carrier is missing key revenue=20 projections. Meeting its projections is critical to winning full approval=20 for its $900 million government loan guarantee, which is a condition for=20 tapping the rest of its bankruptcy financing from the Retirement Systems of= =20 Alabama, a pension fund. Pension fund CEO David Bronner called the pilots'= =20 decision a key step to getting US Airways' reorganization plan filed by a=20 Dec. 20 deadline. "I felt that once United declared bankruptcy we were at=20 risk of being that airline that most of the airline industry wanted to get= =20 rid of so they can fight over the good parts of it," Bronner said. "We=20 don't want to be that victim." The airline is still in talks with its=20 mechanics, represented by the International Association of Machinists, and= =20 other labor groups. Among the changes other unions are being asked to allow: Replace higher-paid mechanics with lesser-paid workers to de-ice aircraft=20 and dock aircraft at gates. Outsource certain jobs held by International Association of Mechanics'=20 members, such as bathroom servicing, plant maintenance work, aircraft=20 catering, and mail and cargo operations. Give the airline more flexibility= =20 in scheduling flight attendants and granting sick leave. And in the event=20 of war with Iraq, US Airways wants to seek an immediate 5% wage deferral=20 for up to 18 months. The pilots' deal would let the airline reduce=20 compensation for pilots when they are on duty but between flights and cut=20 their vacation and training pay. The pilots' union leadership is expected=20 to decide this week whether to reject the deal, modify it or send it as is= =20 to its membership for a vote. The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca Trinbago site: http://www.tntisland.com CBC Website http://www.tntisland.com/caribbeanbrassconnection/ The Trinbago Site of the Week: (TnT News) http://www.tntmirror.com/ (TnT News) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************