US Airways, mechanics may face off in court

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 cuts.

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.

Comments

From Our Partners

2021 Quebec Webinar
Bonjour Québec: It’s Vibrant Cities and Culture
Watch Now
USTOA 2021 horizontal
USTOA 2021
Read More
2021 Outlook Webinar
Outlook 2021
Watch Now

JDS Travel News JDS Viewpoints JDS Africa/MI