Us Airways Pilots' Leaders Prepare For Meeting

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Nov 11, 2003
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US Airways Group Inc., according to financial analysts on both sides, faces bankruptcy or liquidation if unions do not agree to another round of deep cuts. The airline, which emerged from Chapter 11 bankruptcy just last year, has said it must cut another $800 million in labor costs by the end of September.

Agonizing over $295 million in concessions demanded by management, US Airways pilots' leaders sparred with each other ahead of a union meeting scheduled today that may be crucial to the airline's survival.
Some union leaders urged rank-and-file members to show up in person to overrule representatives who have opposed deep concessions, if necessary.

"As this next meeting could very well be the discussion of a tentative agreement or a final proposal, all pilots are urged to attend," Jack Stephan, spokesman for the Air Line Pilots Association's US Airways unit, said in a recorded message to members.

Bankruptcy Looming
US Airways Group Inc., according to financial analysts on both sides, faces bankruptcy or liquidation if unions do not agree to another round of deep cuts.
The airline, which emerged from Chapter 11 bankruptcy just last year, has said it must cut another $800 million in labor costs by the end of September.

With 28,000 employees nationwide, including 5,700 in Philadelphia, US Airways has become a poster child for the fate of older airlines struggling against low-cost carriers in a post-9/11 market.
US Airways carries about two-thirds of air travelers a year at Philadelphia International Airport.

The airline's 3,000 pilots, its highest-paid employees, are seen as setting the tone for the company's negotiations with other unions.
Neither side has disclosed details of the cuts demanded, although they reportedly include more furloughs and deep pay cuts worth $295 million.

Executive Council Divided
The pilots' 12-member executive council has been divided over the concessions, with at least four representatives, from Philadelphia and Pittsburgh, reportedly opposed to the company's demands.

Other representatives, according to news reports, are more amenable to cuts. Believing the rank-and-file agree, they want the proposal sent directly to the members for a vote.
Under union rules, the council may decide such major questions with a "roll-call" vote, under which each representative's vote is weighted according to the number of pilots he or she represents. In a roll-call vote, four representatives of Philadelphia and Pittsburgh pilots can dictate the outcome because they represent the most pilots.

Bill Pollock, chairman of the council, threw the dispute into the open early Monday, telling members in a recorded message that a Pittsburgh representative had cut off discussion of a rank-and-file vote.
"The [council] recessed after being in session for less than six hours. You unequivocally deserve better. We are running out of time and wasting opportunities," Pollock had said.

Wednesday, union and company negotiators were discussing "the economics of current proposals." Union negotiators were expected to formally present the results to the council today in Arlington, Va., said Stephan, the council spokesman.
"If that indeed occurs, the [council] will then make the determination if this final proposal/agreement would be sent to the membership for ratification," Stephan said.

Roll Call Vote?
Suggesting that some representatives may try to prevent a membership vote, Stephan added: "The question still exists if a roll call vote would be utilized to keep the membership from voting on a final proposal, so pilots would be well served by attending this next meeting, or at the very least, contacting your Reps immediately and letting them know your feelings."

Philadelphia-based pilots' representatives, Capt. John Crocker and First Officer Daniel Von Bargen, did not return several phone calls seeking comment.
Crocker, in his own recorded message, denied that he opposed a vote for members. In a one-sentence message for people calling his Florida number yesterday, Crocker said:

"For those of you calling about membership ratification, I have always been a firm believer in membership ratification of any tentative agreement."
Meanwhile, the International Association of Machinists, representing 9,000 mechanics, baggage handlers and other airport workers, said its consultants were reviewing a cost-cutting proposal from US Airways.

US Airways has said it needs $263 million a year in savings from the machinists, while the union says US Airways should change the way it operates rather than cut wages or benefits.