Flight attendants at US Airways agree to pay cuts, reduced benefits

01/06/05 - newratings.com

NEW YORK, January 6 (newratings.com) – Flight attendants at US Airways Group (UAIR) announced Wednesday that they have ratified an agreement for a 9% pay cut and reduced benefits resulting in annual savings of $93 million for the company. United Airways’ recovery process could, however, be negatively impacted by the recent price cuts announced by Delta Air Lines and the planned entry of Southwest Airlines in Pittsburg.

US Airways needs to get the agreement with its flight attendants approved by a bankruptcy court. The company has now reached cost-cutting agreements with all its unions, except the International Association of Machinists, in its efforts to achieve annual savings of $950 million. The Machinists union represents about 9,000 mechanics and baggage handlers, and the company is seeking a combined $353 million in wage and benefit cuts from the union. The company has also requested a federal bankruptcy judge to scrap its contract with the machinists and impose concessions if they do not agree to wage and benefit cuts. The request is scheduled for hearing on Thursday. The company had filed for bankruptcy protection in September this year for the second time in two years, after failing to reach an agreement for cost cuts with its workers.