The article below from NYTimes.com has been sent to you by psa188@xxxxxxxxx /--------- E-mail Sponsored by Fox Searchlight ------------\ I HEART HUCKABEES - OPENING IN SELECT CITIES OCTOBER 1 From David O. Russell, writer and director of THREE KINGS and FLIRTING WITH DISASTER comes an existential comedy starring Dustin Hoffman, Isabelle Hupert, Jude Law, Jason Schwartzman, Lily Tomlin, Mark Wahlberg and Naomi Watts. Watch the trailer now at: http://www.foxsearchlight.com/huckabees/index_nyt.html \----------------------------------------------------------/ US Airways Sets Deadline for Concessions September 23, 2004 By MICHELINE MAYNARD US Airways yesterday gave its unions until tomorrow to agree to emergency contract concessions. Otherwise, the airline said, it would ask a federal bankruptcy court to impose temporary pay cuts and other cost-saving steps aimed at generating much-needed cash. The ultimatum was contained in a bulletin last night from the chief executive, Bruce R. Lakefield, to the airline's 28,000 employees. It came shortly after leaders of the airline's pilots union voted yesterday to resume negotiations with the airline. The airline did not say how much it was seeking in emergency relief from the unions, or whether it was more than the $800 million in concessions that it had initially sought. On Sept. 12, US Airways sought bankruptcy protection for the second time in two years, after its workers declined to grant $800 million in concessions. They had granted two sets of concessions worth $1.9 billion a year during the company's first bankruptcy filing, from which it emerged last year. In the bulletin, Mr. Lakefield said the airline had presented proposals for emergency relief to unions representing its pilots, flight attendants, customer service agents, dispatchers and mechanics. The airline needs to raise cash because it could not arrange debtor-in-possession financing, a feature of most bankruptcies. Its assets, including its cash, are pledged to secure the balance on $900 million in loan guarantees granted in 2003 by the Air Transportation Stabilization Board. As a result, the airline is operating on cash made available by the loan board, as well as revenue from ticket sales and other services. Yesterday, Mr. Lakefield said the airline had "a duty and an obligation" to build cash for the fall and winter, traditionally the slowest time for airlines, except for the holiday periods. If the airline did nothing, Mr. Lakefield said, "the drain on our cash reserves would jeopardize the company and everyone's job." Mr. Lakefield said the unions had until Friday to respond. If they do not grant the cuts, he said, the airline will seek emergency relief from the Federal Bankruptcy Court in Alexandria, Va. Federal bankruptcy code permits companies to seek emergency pay cuts and to ask to replace their labor agreements with less-expensive contracts. For interim relief, a judge does not require that a company and its unions negotiate before imposing temporary cuts. Once a request is made, the judge schedules a hearing. If the airline subsequently moves to set aside its labor contracts, which is a more serious matter, the two sides have 60 days to reach an agreement. After that, if no deal has been reached, the judge can impose concessions. Labor experts say it is better for unions to negotiate deals than to have cuts imposed because negotiations give them the opportunity to protect the most important parts of their contract. Mr. Lakefield said US Airways would continue to negotiate with its unions, no matter what action it takes, and said the airline preferred to reach agreements without seeking court action. "These are not measures that we take lightly," he said, "but absent labor agreements, we must take them to ensure continued customer confidence, continued access to cash, and continued paychecks and benefits to each of you." Yesterday, the master executive council of the Air Line Pilots Association said talks would go on even if US Airways sought court action. The pilot leaders' decision came after a two-day meeting in Charlotte, N.C., one of US Airways' three hubs. On Labor Day, pilot leaders opposed to concessions blocked members from voting on an offer from the company for $295 million a year in cuts. The leaders, representing pilots in Pittsburgh and Philadelphia, its other two hubs, were upset with the airline's plans to reduce retirement benefits, which were cut during the previous bankruptcy. However, yesterday's vote on resuming contract talks was unanimous, the union said. The leaders also removed restrictions on the negotiators that had prevented them from discussing revisions to parts of the contract. Earlier this week, US Airways made a new offer to the pilots that the union said called for more concessions than the $295 million in the rejected offer. A union spokesman, Jack Stephan, declined to discuss the details of the offer, except to say that it was "north" of what the company previously requested. Mr. Stephan predicted that US Airways would probably push for more than the $800 million in cuts it initially sought. "We've learned from previous bankruptcies that sometimes companies underestimate" the size of cuts they need, he said. "It's fair to assume things could get more expensive for all the unions." The pilots' decision to resume talks came a day after the airline reached a tentative agreement with the Transport Workers Union on a proposal for $4.5 million in annual cuts. The union, which represents 150 flight dispatchers, was the first to reach a deal with the company. Despite the tentative deal, the dispatchers could be included in US Airways' bid for emergency relief. http://www.nytimes.com/2004/09/23/business/23air.html?ex=1096948696&ei=1&en=0efd1edebf99ddcd --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://homedelivery.nytimes.com/HDS/SubscriptionT1.do?mode=SubscriptionT1&ExternalMediaCode=W24AF HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2004 The New York Times Company