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Reuters
US Air, pilots to reopen concession talks
Friday August 27, 7:34 pm ET
WASHINGTON, Aug 27 (Reuters) - US Airways and its pilots union agreed to reopen concession talks late on Friday after leaders of the labor group declined to endorse a plan proposed by management for nearly $300 million in givebacks, both sides said.
The executive members of the US Airways unit of the Air Line Pilots Association, after three days of tense internal discussion on the proposal, opted for more negotiations with the company rather than rejecting the plan outright or seeking a vote by the union's full membership.
The airline has said it has just weeks to reach giveback agreements with its unions before deciding whether it has to enter bankruptcy for the second time in two years.
The development increases pressure on the company to quickly change the scope of its proposal or risk losing crucial support for its strategy to overhaul the airline and stay solvent.
Talks broke down earlier this week and pilot negotiators asked the 12-member executive council to determine the next step.
US Airways is pushing to reach giveback deals with its unions worth $800 million, which would represent more than half of its immediate cost-cutting targets. The pilots share of those concessions would be $295 million, including a 16 percent pay cut.
Support from the pilots will likely make winning concessions from other unions easier. Talks with machinists, flight attendants and other groups are ongoing.
US Air, pilots to reopen concession talks
Friday August 27, 7:34 pm ET
WASHINGTON, Aug 27 (Reuters) - US Airways and its pilots union agreed to reopen concession talks late on Friday after leaders of the labor group declined to endorse a plan proposed by management for nearly $300 million in givebacks, both sides said.
The executive members of the US Airways unit of the Air Line Pilots Association, after three days of tense internal discussion on the proposal, opted for more negotiations with the company rather than rejecting the plan outright or seeking a vote by the union's full membership.
The airline has said it has just weeks to reach giveback agreements with its unions before deciding whether it has to enter bankruptcy for the second time in two years.
The development increases pressure on the company to quickly change the scope of its proposal or risk losing crucial support for its strategy to overhaul the airline and stay solvent.
Talks broke down earlier this week and pilot negotiators asked the 12-member executive council to determine the next step.
US Airways is pushing to reach giveback deals with its unions worth $800 million, which would represent more than half of its immediate cost-cutting targets. The pilots share of those concessions would be $295 million, including a 16 percent pay cut.
Support from the pilots will likely make winning concessions from other unions easier. Talks with machinists, flight attendants and other groups are ongoing.
