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Judge gives US Airways more time to negotiate
PITTSBURGH (Business Times) - A federal judge has agreed to let US Airways have more time to negotiate with employees who haven''t ratified restructuring agreements before he considers the airline''s request to dissolve its collective bargaining agreements with those workers.
During a hearing in Alexandria, Va., Tuesday, Judge Stephen Mitchell of U.S. Bankruptcy Court postponed the request to dissolve the labor agreements until Sept. 23, according to a Dow Jones report.
Some 14,000 US Airways employees have yet to agree to wage and benefit cuts that would help the Arlington, Va.-based air carrier restructure. Those employees are represented by the Communications Workers of America and the International Association of Machinists.
US Airways filed for Chapter 11 bankruptcy protection on Aug. 11. After months of negotiations with the company, employees including pilots, flight attendants and baggage handlers approved restructuring agreements.
US Airways had asked the bankruptcy court to dissolve its labor agreements with the communications workers and members of the machinists union who had not agreed to concessions. The hearing Tuesday was supposed to address that request, but US Airways asked the court last week for a delay after it reached a tentative agreement with the communications workers on Sept. 6.
The communications workers union represents about 8,000 reservations and customer service employees at US Airways. The machinists union represents several groups of US Airways employees, including almost 7,000 mechanics who have not agreed to restructuring concessions.
US Airways, which operates a major hub at Pittsburgh International Airport, is using other cost-cutting measures, such as trimming its flight schedule and retiring older aircraft to assist its restructuring effort. The airline also has received conditional approval for federal loan guarantees worth $900 million.
PITTSBURGH (Business Times) - A federal judge has agreed to let US Airways have more time to negotiate with employees who haven''t ratified restructuring agreements before he considers the airline''s request to dissolve its collective bargaining agreements with those workers.
During a hearing in Alexandria, Va., Tuesday, Judge Stephen Mitchell of U.S. Bankruptcy Court postponed the request to dissolve the labor agreements until Sept. 23, according to a Dow Jones report.
Some 14,000 US Airways employees have yet to agree to wage and benefit cuts that would help the Arlington, Va.-based air carrier restructure. Those employees are represented by the Communications Workers of America and the International Association of Machinists.
US Airways filed for Chapter 11 bankruptcy protection on Aug. 11. After months of negotiations with the company, employees including pilots, flight attendants and baggage handlers approved restructuring agreements.
US Airways had asked the bankruptcy court to dissolve its labor agreements with the communications workers and members of the machinists union who had not agreed to concessions. The hearing Tuesday was supposed to address that request, but US Airways asked the court last week for a delay after it reached a tentative agreement with the communications workers on Sept. 6.
The communications workers union represents about 8,000 reservations and customer service employees at US Airways. The machinists union represents several groups of US Airways employees, including almost 7,000 mechanics who have not agreed to restructuring concessions.
US Airways, which operates a major hub at Pittsburgh International Airport, is using other cost-cutting measures, such as trimming its flight schedule and retiring older aircraft to assist its restructuring effort. The airline also has received conditional approval for federal loan guarantees worth $900 million.