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US Airways Wins Concessions from Machinists

January 25, 2005
Bankrupt US Airways is another step closer to remaining airborne. Three of the airline's employee groups, represented by the International Association of Machinists and Aerospace Workers (IAM), have voted to accept new four-year agreements providing hundreds of millions of dollars in annual cost savings.

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The fleet service workers, mechanics and maintenance workers voted separately under the threat of a bankruptcy court ruling that would have terminated existing labor contracts at the airline if the company's offers were rejected.

"US Airways management must utilize the advantage our members have provided, not squander it as they have done in the past," said IAM General Vice President Robert Roach, Jr. "The company has everything it needs from labor to succeed. The pressure is now on management to deliver."

"The vote came down to choosing between bad and worse," said William O'Driscoll, President of IAM District 142, representing US Airways' Mechanic & Related and Maintenance Training Specialists. "Let their decision end the debate about our members' commitment to US Airways."

"It is time to look beyond labor costs for answers to this industry's chronic mismanagement," said Randy Canale, President of IAM District 141, representing Fleet Service workers.

Management sounded a conciliatory note. "The employees of US Airways have been through their share of challenges as the airline industry continues to change. But, we believe the most difficult days are behind us," said CEO Bruce Lakefield in an e-mail to the airline's frequent fliers.

Lakefield predicted there would be "clear skies ahead."

"US Airways has adequate resources and labor support to transform the airline in the many ways we have been talking about over the past year. We plan to emerge from Chapter 11 by the end of June," Lakefield said.

The concessions include pay cuts of 13 percent to 20 percent, fewer holidays, less sick time, reduced retirement benefits and the elimination of as many as 2,000 jobs.

The IAM represents more than 130,000 air and rail workers in North America.

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