Monday, August 23, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
Critical concessionary talks between US Airways and its pilots union broke off Sunday without an agreement, with the airline claiming a "substantial gap" between the pilots' proposal and the $295 million in annual savings being requested by US Airways.
The company, perhaps as a last resort, provided the pilot negotiators with a new proposal that meets the carrier's needs and asked that it be given to the pilots' 12-man governing body, the Master Executive Council. The council plans to meet Wednesday to review the proposal and "determine what further actions should be taken," pilot spokesman Jack Stephan told 3,000 US Airways pilots early this morning via a recorded telephone message.
The fact that the weekend passed without a new cost-cutting agreement is a setback for the nation's seventh-largest airline, which is asking all its labor groups for $800 million in cuts by mid-September to avoid a second descent into bankruptcy. It originally asked for talks to end Friday but continued to meet Saturday and Sunday in Arlington, Va., hoping a new accord with the pilots would put pressure on the flight attendants, passenger service workers and machinists.
Despite the fact that management and union negotiators ended more than two and half months of talks without an agreement yesterday, the pilots' governing council could still decide at Wednesday's meeting to send the company's last proposal out for a vote of the pilots' rank and file. But such a move might not be endorsed by five pilot representatives from Pittsburgh, Philadelphia and Boston, who effectively control the votes of the union council and believe union leaders have negotiated away too much in years' past.