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US Air Proposes Pay Package For Pilot Merger
May 30, 2007
By David Bond/Aviation Daily
US Airways is offering its pilots a package worth about $122 million per year to unify the separate contracts of its two pre-merger unions, the carrier said in a Securities and Exchange Commission filing.
The main element of the package covers pay raises for both pilot groups, each represented by a separate unit of the Air Line Pilots Association. Pilots of the pre-merger US Airways, who accepted pay concessions in each of the carrier's two post-2001 Chapter 11 reorganizations, would be brought up to the higher pay scales and contract terms of pre-merger pilots of the other merger partner, America West. The America West pilots would get a 3% raise, plus unspecified "other improvements." The carrier said hourly pay would increase between 3% and 17%, averaging 10%.
In return, the roughly 4,100 pilots would extend the revised contract three years, through 2012, providing cost-certainty for the additional term. US Airways said its proposed contract also would provide scope protection, improve scheduling and vacation flexibility and increase days off for pilots on reserve duty. The $122 million-per-year total is US Airways' estimate of how much its pilot labor costs would increase under the proposal.
The merger was a key provision in the former US Airways' emergence from bankruptcy protection in September 2005. Pilots have been working since then under a transition agreement with work rules and procedures intended to be replaced by a negotiated contract. The merged US Airways has secured unification contract agreements with passenger service employees, reservations agents, flight-crew training instructors, flight simulator engineers and dispatchers. But contracts for the pilots, flight attendants, mechanics and fleet service employees remain to be resolved.
May 30, 2007
By David Bond/Aviation Daily
US Airways is offering its pilots a package worth about $122 million per year to unify the separate contracts of its two pre-merger unions, the carrier said in a Securities and Exchange Commission filing.
The main element of the package covers pay raises for both pilot groups, each represented by a separate unit of the Air Line Pilots Association. Pilots of the pre-merger US Airways, who accepted pay concessions in each of the carrier's two post-2001 Chapter 11 reorganizations, would be brought up to the higher pay scales and contract terms of pre-merger pilots of the other merger partner, America West. The America West pilots would get a 3% raise, plus unspecified "other improvements." The carrier said hourly pay would increase between 3% and 17%, averaging 10%.
In return, the roughly 4,100 pilots would extend the revised contract three years, through 2012, providing cost-certainty for the additional term. US Airways said its proposed contract also would provide scope protection, improve scheduling and vacation flexibility and increase days off for pilots on reserve duty. The $122 million-per-year total is US Airways' estimate of how much its pilot labor costs would increase under the proposal.
The merger was a key provision in the former US Airways' emergence from bankruptcy protection in September 2005. Pilots have been working since then under a transition agreement with work rules and procedures intended to be replaced by a negotiated contract. The merged US Airways has secured unification contract agreements with passenger service employees, reservations agents, flight-crew training instructors, flight simulator engineers and dispatchers. But contracts for the pilots, flight attendants, mechanics and fleet service employees remain to be resolved.
