NYTimes.com Article: US Airways Pilots Reject Wage and Benefit Cuts

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US Airways Pilots Reject Wage and Benefit Cuts

September 7, 2004
 By MICHELINE MAYNARD





Leaders of the US Airways pilots' union rejected a bid to
have pilots vote on a proposal by the airline for $295
million in wage and benefit cuts, the union said early
today.

Support by the pilots for concessions is critical for the
struggling airline to win agreement from other unions on
wage and benefit cuts it says are needed to avoid a second
bankruptcy.

US Airways has said unless it gets a total of $800 million
in concessions from its 28,000 employees by the end of
September, it is likely to seek bankruptcy protection.

US Airways and the pilots' union have been negotiating
nonstop the past week on a proposal that would cut wages as
well as the pilots' pension plan.

Union leaders representing pilots in Pittsburgh and
Philadelphia voted to block the proposal from being
presented to the union's 3,000 pilots for a vote.

The pilots' leaders, who met in Arlington, Va., said in a
statement that it was uncertain whether negotiations would
continue with US Airways.

The airline had no comment.

US Airways is seeking a third round of concessions from its
employees, on top of two sets of cuts granted while the
airline was in bankruptcy protection. US Airways, which
emerged from bankruptcy in April 2003, is trying to
transform itself into a low-cost airline so that it can
compete with rivals like Southwest and JetBlue.

http://www.nytimes.com/2004/09/07/business/07usair.html?ex=1095562950&ei=1&en=094327d458b41793


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