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Reuters
US Airways pilots offer to cut pay by 12.5 pct
Friday June 25, 5:10 pm ET
WASHINGTON, June 25 (Reuters) - Pilots at US Airways are offering to take a 12.5 percent pay cut and work more hours through 2008 to help meet fresh cost-cutting targets at the carrier as it struggles to stay viable, the pilots union said on Friday.
The proposal submitted to the company this week by the US Airways negotiating unit of the Air Line Pilots Association is the first significant offer by any union at the carrier, which is seeking to save $1.5 billion, including $800 million from labor.
The Arlington, Virginia-based airline emerged from bankruptcy protection last year and is again overhauling its business plan to counter low-cost competition, especially Southwest Airlines.
The pilots would cut their wages across the board and forego any raises. They would also boost their monthly work schedule from 85 to 90 hours.
"This is important. It involves real dollars and cents," said Jack Stephan, a spokesman for pilots at US Airways. "I'm sure there will be further discussions in other areas, but right now this is where we are."
US Airways is seeking $295 million in concessions from the pilots but Stephan was reluctant to put a dollar figure on the union's proposal since other issues must still be negotiated.
But the airline called the proposal a "very good step" toward reaching its goals.
"It's clear as a result of the pilots' willingness to sit down and talk that they share the same commitment for the survival of the company," said US Airways spokesman David Castelveter.
The airline's new chief executive, Bruce Lakefield, hopes to complete giveback agreements with labor groups in September.
In addition to pilots, the company is seeking $116 million in concessions from flight attendants, $263 million from mechanics and fleet service workers, and $122 million from reservation agents and passenger service and ticket counter employees.
US Airways pilots offer to cut pay by 12.5 pct
Friday June 25, 5:10 pm ET
WASHINGTON, June 25 (Reuters) - Pilots at US Airways are offering to take a 12.5 percent pay cut and work more hours through 2008 to help meet fresh cost-cutting targets at the carrier as it struggles to stay viable, the pilots union said on Friday.
The proposal submitted to the company this week by the US Airways negotiating unit of the Air Line Pilots Association is the first significant offer by any union at the carrier, which is seeking to save $1.5 billion, including $800 million from labor.
The Arlington, Virginia-based airline emerged from bankruptcy protection last year and is again overhauling its business plan to counter low-cost competition, especially Southwest Airlines.
The pilots would cut their wages across the board and forego any raises. They would also boost their monthly work schedule from 85 to 90 hours.
"This is important. It involves real dollars and cents," said Jack Stephan, a spokesman for pilots at US Airways. "I'm sure there will be further discussions in other areas, but right now this is where we are."
US Airways is seeking $295 million in concessions from the pilots but Stephan was reluctant to put a dollar figure on the union's proposal since other issues must still be negotiated.
But the airline called the proposal a "very good step" toward reaching its goals.
"It's clear as a result of the pilots' willingness to sit down and talk that they share the same commitment for the survival of the company," said US Airways spokesman David Castelveter.
The airline's new chief executive, Bruce Lakefield, hopes to complete giveback agreements with labor groups in September.
In addition to pilots, the company is seeking $116 million in concessions from flight attendants, $263 million from mechanics and fleet service workers, and $122 million from reservation agents and passenger service and ticket counter employees.
