US Airways Chops Payroll, Paychecks

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US Airways Chops Payroll, Paychecks





United Press International


Bankrupt US Airways of Virginia says it will cut the pay of some 3,800 non-union workers and dismiss 10 percent of its managers and administrators.

The pay reductions, from 5 percent to 10 percent, and layoffs will hit the Pittsburgh area hard, the Post-Gazette reported Tuesday. Almost 970 of those 3,800 work at an office park near Pittsburgh International Airport, once US Airway's main hub..

The Arlington airline said the cuts are aimed at helping trim about $45 million from its $201 million management payroll. The latest cuts are deeper than the $30 million in management cuts US Airways implemented during its first bankruptcy.

The carrier also is:

-- reducing the number of paid holiday days for executives by 20 percent and replacing sick and vacation leave with a paid time off system based on seniority;

-- leaving 137 management jobs vacant;

-- slashing its contribution to the managers' retirement plan to 3 percent from as much as 13 percent, regardless of the worker's age or seniority; and

-- cutting retiree benefits, including medical, dental and life insurance beginning January 2005, changes that will force retirees to pay a higher deductible.


Roger
EWROPS

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