NYTimes.com Article: Leaders for US Air's Pilots to Revisit Deal on Pay Cuts

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Leaders for US Air's Pilots to Revisit Deal on Pay Cuts

October 4, 2004
 By MICHELINE MAYNARD





Leaders of the US Airways pilots' union will meet tomorrow
in Pittsburgh to resume debate over a tentative agreement
that would grant $300 million in wage and benefit cuts to
the airline.

Union officials failed to agree at a two-day meeting over
the weekend in Charlotte, N.C., on whether to send the deal
to members for a vote. Approval by the master executive
council of the Air Line Pilots Association, which
represents US Airways' pilots, is needed before all pilots
can vote on the deal.

Leaders from Pittsburgh and Philadelphia, who represent the
majority of the airline's pilots, asked for more time to
consider the pact's details, Jack Stephan, a spokesman for
the pilots' union, said yesterday. "Clearly, there is still
some resistance by the Pennsylvania delegation to sending
this thing out," Mr. Stephan said.

Despite the delay, the pilots' union scheduled a series of
information meetings to explain the tentative agreement to
pilots. Those meetings run through Oct. 14. The union has
not yet determined when voting will take place, Mr. Stephan
said.

US Airways submitted a Chapter 11 bankruptcy filing, its
second in two years, on Sept. 12. The move came after union
members did not grant the airline's bid for $800 million in
cuts.

US Airways has since increased its demand to $950 million
in cuts. Last month, it asked a federal bankruptcy court to
impose emergency pay cuts of 23 percent on its unions, and
asked for reductions in pension payments and other steps.

Without the emergency cuts, US Airways could liquidate by
mid-February, the airline said in a court filing. A judge
is set to hear the request at a hearing on Thursday.

Under the federal bankruptcy code, companies can seek
emergency cuts and can file another motion asking that
labor contracts be set aside completely and be replaced
with less-expensive terms, unless it reaches agreements
with its unions.

Depending on what happens with the tentative deal, US
Airways could still seek emergency cuts for the pilots'
union, and replace them later with the terms of a ratified
deal.

The airline has reached agreements with a few small labor
groups, but is still negotiating with flight attendants,
mechanics and reservations agents.

The tentative agreement calls for pilots to take an 18.25
percent wage cut. US Airways' contribution to their pension
plan would be sharply reduced.

The airline also said it would eliminate health care
coverage for retirees, a move it plans for all its labor
groups, meaning workers would have to rely on Medicare
after age 65.

Because pilots at major airlines are required by the
federal government to retire at age 60, the temporary
agreement would allow pilots to pay for company medical
coverage until they reach 65.

http://www.nytimes.com/2004/10/04/business/04air.html?ex=1097903429&ei=1&en=f8cca6f02d775357


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