ARLINGTON, Va. (AP) -- Union leaders representing US Airways pilots said Thursday that a new labor agreement could be struck soon, telling their rank and file a new deal is "our last opportunity to control the fate of our airline and our careers."
US Airways Group Inc. has said that new labor deals with unions are necessary to avoid a second trip into bankruptcy and possible liquidation. Though the airline has warned that bankruptcy looms if deals are not reached by at least Sept. 30, progress has been slow.
A deal with the pilots would be the first significant step in US Airways' plans to cut costs by $1.5 billion a year, including labor savings of $800 million.
The airline has sought $295 million a year in concessions from pilots. Management made a proposal Tuesday that union leaders are asking members to review carefully.
"It is by no means a final deal, but it will give you an idea of how management is now looking at many of the issues, and the alternatives, being discussed at the table," wrote Bill Pollock, chairman of the union's leadership council. "Since a tentative agreement could be struck soon, it's critical to remain informed."
Pollock's message did not discuss details of management's proposal.
Union spokesman Jack Stephan said both management and union proposals are designed to achieve $295 million in savings, but that some differences exist as to exactly how much savings can be achieved through specific contract changes.
US Airways spokeswoman Amy Kudwa said the airline believes "both sides are committed to reaching a deal as quickly as possible."
Pollock, in his message to pilots, also rebuked some members of his own union group for dismissing the threat of liquidation.
"I know you've heard it before, but these negotiations are quite likely the most critical ones of our careers. This may very well be our last time at bat, our last opportunity to control the fate of our airline and our careers," Pollock said.
Stephan said this round of negotiations has been particularly difficult for the union because it comes on top of major concessions that enabled the airline to emerge from its initial bankruptcy reorganization.
"We're starting to cut into the bones of the contract, not just the flesh and muscle, so it's been a very painful process," Stephan said.
Generally, the pilots have been most receptive to renegotiating their contract. The pilots were also first to reach a new deal during US Airways' first trip into bankruptcy in 2002, when labor groups collectively made more than $1 billion a year in concessions.
A study commissioned by the pilots found earlier this month that a bankruptcy filing loomed as soon as mid-September unless management could implement reforms and cost savings.
US Airways is also seeking concessions from its flight attendants, machinists, and from the Communications Workers of America, which represents reservations agents and gate workers.
Last week, US Airways chief executive Bruce Lakefield said progress with the machinists was "nonexistent." Negotiations with the CWA are also expected to be particularly difficult, because those employees do not have the complex work rules that provide more flexibility for negotiations with, say, the pilots or flight attendants.
Earlier this week, US Airways chairman David Bronner said that if US Airways is forced to file for bankruptcy again, he expects the airline will have to liquidate rather than reorganize.
In a recorded message to employees, Lakefield said Bronner's comments reflect a worst-case scenario and that "talk of an imminent shutdown, a disruption of service, or impending liquidation is simply not true."
"If Chapter 11 becomes necessary, our survival will remain dependent upon transformation," Lakefield said. "One way or another, we need new labor agreements."
US Airways shares fell 15 cents Thursday to close at $1.78 on the Nasdaq Stock Market.
US Airways Group Inc. has said that new labor deals with unions are necessary to avoid a second trip into bankruptcy and possible liquidation. Though the airline has warned that bankruptcy looms if deals are not reached by at least Sept. 30, progress has been slow.
A deal with the pilots would be the first significant step in US Airways' plans to cut costs by $1.5 billion a year, including labor savings of $800 million.
The airline has sought $295 million a year in concessions from pilots. Management made a proposal Tuesday that union leaders are asking members to review carefully.
"It is by no means a final deal, but it will give you an idea of how management is now looking at many of the issues, and the alternatives, being discussed at the table," wrote Bill Pollock, chairman of the union's leadership council. "Since a tentative agreement could be struck soon, it's critical to remain informed."
Pollock's message did not discuss details of management's proposal.
Union spokesman Jack Stephan said both management and union proposals are designed to achieve $295 million in savings, but that some differences exist as to exactly how much savings can be achieved through specific contract changes.
US Airways spokeswoman Amy Kudwa said the airline believes "both sides are committed to reaching a deal as quickly as possible."
Pollock, in his message to pilots, also rebuked some members of his own union group for dismissing the threat of liquidation.
"I know you've heard it before, but these negotiations are quite likely the most critical ones of our careers. This may very well be our last time at bat, our last opportunity to control the fate of our airline and our careers," Pollock said.
Stephan said this round of negotiations has been particularly difficult for the union because it comes on top of major concessions that enabled the airline to emerge from its initial bankruptcy reorganization.
"We're starting to cut into the bones of the contract, not just the flesh and muscle, so it's been a very painful process," Stephan said.
Generally, the pilots have been most receptive to renegotiating their contract. The pilots were also first to reach a new deal during US Airways' first trip into bankruptcy in 2002, when labor groups collectively made more than $1 billion a year in concessions.
A study commissioned by the pilots found earlier this month that a bankruptcy filing loomed as soon as mid-September unless management could implement reforms and cost savings.
US Airways is also seeking concessions from its flight attendants, machinists, and from the Communications Workers of America, which represents reservations agents and gate workers.
Last week, US Airways chief executive Bruce Lakefield said progress with the machinists was "nonexistent." Negotiations with the CWA are also expected to be particularly difficult, because those employees do not have the complex work rules that provide more flexibility for negotiations with, say, the pilots or flight attendants.
Earlier this week, US Airways chairman David Bronner said that if US Airways is forced to file for bankruptcy again, he expects the airline will have to liquidate rather than reorganize.
In a recorded message to employees, Lakefield said Bronner's comments reflect a worst-case scenario and that "talk of an imminent shutdown, a disruption of service, or impending liquidation is simply not true."
"If Chapter 11 becomes necessary, our survival will remain dependent upon transformation," Lakefield said. "One way or another, we need new labor agreements."
US Airways shares fell 15 cents Thursday to close at $1.78 on the Nasdaq Stock Market.
