Quick labor givebacks to USAirways seen unlikely
Thu Sep 23, 2004 07:45 PM ET
By Susan Cornwell
WASHINGTON, Sept 23 (Reuters) - Labor concessions to bankrupt US Airways (UAIRQ.OQ: Quote, Profile, Research) do not appear likely in the near term to head off threatened court-ordered changes in contracts, Republican senators who met with several pilots' union members said on Thursday.
Spokesmen for the big unions at the No. 7 U.S. airline also gave no indication that any short-term givebacks were in the works, saying they were focusing on long-term negotiations.
"I didn't get any sense that an agreement was imminent in the next 24 hours between this union or, from their indication to us, any other" union and US Airways, Sen. Rick Santorum, a Pennsylvania Republican, told reporters in the Capitol.
He and Sen. Arlen Specter, also a Pennsylvania Republican, spoke after meeting several members of the airline pilots' union from Pennsylvania.
US Airways said on Wednesday that it wanted consent from unions for emergency concessions, otherwise it would go to bankruptcy court in Alexandria, Virginia on Friday with a motion to force contract relief.
"Obviously, it's a very difficult, if not impossible situation with U.S. Airways laying down an ultimatum," Specter told reporters.
He said the company should put a long-term plan for recovery on the table before asking for more concessions, and suggested the bankruptcy court might want to look at the option of appointing a trustee who would bring in new management.
"The court may well conclude management is not up to the job," Specter said.
Representatives for the unions representing pilots, machinists and flight attendants said they did not expect to negotiate with US Airways on short-term contract relief before Friday. Union lawyers plan to oppose the motion in court, they said.
The Air Line Pilots Association and Association of Flight Attendants said they would continue to negotiate with the company on long-term contract changes, despite the company's move to win short-term relief.
The International Association of Machinists, which has so far refused to consider reopening its contract for new concessions, said it wants more information so it can evaluate the company's need for what it called "drastic" changes.
US Airways has been trying for months to save at least $1.5 billion and operate more like a low-cost carrier. It was not clear whether it now wants to throw out collective bargaining agreements altogether, or cut costs surgically to reach its savings goal from labor groups.
The Pennsylvania pilots who met the senators Thursday had cast votes to block steep concessions by the union earlier this month. But they are not part of the union negotiating team. Alexandria, Virginia-based US Airways filed for bankruptcy a second time on Sept. 12.
Santorum had criticized pilots for obstinacy earlier this month but he said on Thursday that he was glad the pilots' union had decided to return to the bargaining table after the company sought bankruptcy. (Additional reporting by Meredith Grossman Dubner in Chicago)
