Federal bankruptcy judge cancels US Airways contract with machinists January 06, 2005 12:23 PM ALEXANDRIA, Va. A federal bankruptcy judge in Virginia has canceled a collective bargaining agreement between US Airways and its machinists union. The ruling will provide hundreds of millions of dollars in annual savings the Arlington, Virginia-based airline says it needs to survive. The termination of the union contract with the International Association of Machinists will mean pay cuts for union workers ranging from six percent to 35 percent and the loss of thousands of union jobs. But there's still a chance the union and the airline will reach a new deal. US Airways lawyer Brian Leitch (leech) says the machinists union has agreed to send the company's best final offer to union workers for a vote. The cancellation of the contract will be nullified if the union accepts US Airways' offer by January 21st. US Bankruptcy Judge Stephen Mitchell has also agreed to terminate the pension plans for machinists and flight attendants, as well as a frozen pension plan that was still providing benefits to 28-thousand retirees. Roger EWROPS