IAM says US liquidation possible

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IAM - US Airways Bankruptcy Update
December 9, 2002
US Airways called a meeting with IAM representatives today at its headquarters in Arlington, VA. The carrier confirmed published news reports that the Retirement Systems of Alabama (RSA), which is providing Debtor in Possession (DIP) financing to the company while in bankruptcy, is requiring an additional $200 million in annual labor savings, or it would withhold additional funding critical to the carrier’s operations. The likely result of such action would be a liquidation of the company’s assets, and ceasing all activities.
Even after today’s discussions, several important questions remain unanswered. The carrier has yet to state exactly what is needed from IAM members, whether management and non-union employees would be participating and, most importantly, will the additional $200 million ensure receipt of an ATSB loan guarantee and a successful emergence from bankruptcy.
US Airways will be meeting with labor groups throughout the week. Mechanic and Related representatives from District 141-M are scheduled to meet with the carrier on Wednesday and District 141’s Fleet Service representatives will be in discussions with the carrier on Thursday.
We will update the membership as developments occur.