WASHINGTON -- A bankruptcy court showdown is looming between US
Airways and its mechanics.
The mechanics late Aug. 28 rejected a new contract agreement
that included wage cuts, with 57% voting against it.
"We now regrettably must pursue changes to the mechanics'
contract through the bankruptcy court if we are unable to quickly
reach a new agreement," airline chairman and chief executive David
Siegel said Aug. 29.
US Airways has a court hearing scheduled for Sept. 10 in which
it will ask the judge to void contracts and let US Airways impose
new conditions for unions that have not voluntarily agree to wage
The airline also still is negotiating with the union
representing its reservations and ticket counter employees. But, in
good news for management, the airline's fleet service workers
ratified their agreement on the restructuring plan.
United, meanwhile, is asking its mechanics to provide $265
million in annual cost reductions under an agreement that would
include a 9.5% pay cut, the International Association of Machinists
and Aerospace Workers said.
United also is asking for an as-yet undisclosed amount of
concessions from its pilots.