US Airways Asks Workers to Work for Free
Wednesday December 29, 11:44 am ET
NEW YORK- Bankrupt US Airways (OTC BB:UAIRQ.OB - News) on Wednesday said it is asking nonunion employees who are not scheduled to work over the New Year's weekend to volunteer to work for free at its Philadelphia operations.
The No. 7 U.S. airline, which filed for bankruptcy protection in September after emerging from a previous bankruptcy process in March 2003, canceled almost 400 flights over the Christmas weekend after an unusually high number of baggage handlers called in sick.
The company, which is seeking concessions from the union representing mechanics and baggage handlers, has asked for employees to volunteer at Philadelphia from Dec. 30 to Jan. 3.
While the volunteers will not get paid, employees scheduled to work in Philadelphia over that period will get paid, a US Airways spokesman told Reuters.
"If you are an employee scheduled to work in Philadelphia, you will get paid. Aside from that, we are asking for employees to volunteer, in an effort to prepare for a very busy travel period this coming weekend," David Castelveter, US Airways spokesman, told Reuters.
Volunteers will be asked to meet and greet passengers at the ticket counters, security lines and baggage claim areas, as well as help on the ramp and the in the baggage sorting area.
Thousands of US Airways passengers were left stranded or separated from their luggage over the Christmas weekend. The airline said it has cleared its backlog of more than 10,000 pieces of misplaced luggage.
US Airways said the problems stemmed from flight attendants and baggage handlers calling in sick at about three times the normal rate.
The cash-strapped carrier has said it could begin liquidating in mid-January without concessions from its labor groups.
The Alexandria, Virigina-based company said it needs immediate labor savings of $1 billion from compensation packages and pensions to secure key financing agreements with its largest creditor, General Electric Co.(NYSE:GE - News), banks and the government. It must also have $250 million in new equity to attract investors.
US Airways is trying to dump contracts of unions that have not reached concession packages. Flight attendants, who last week reached a tentative deal for $94 million in annual concessions, have threatened to strike at the carrier if their contracts are voided.
The airline is still seeking additional savings of almost $60 million from flight attendant pensions and medical benefits for retirees.
Pilots and customer service agents have also negotiated giveback agreements.
Wednesday December 29, 11:44 am ET
NEW YORK- Bankrupt US Airways (OTC BB:UAIRQ.OB - News) on Wednesday said it is asking nonunion employees who are not scheduled to work over the New Year's weekend to volunteer to work for free at its Philadelphia operations.
The No. 7 U.S. airline, which filed for bankruptcy protection in September after emerging from a previous bankruptcy process in March 2003, canceled almost 400 flights over the Christmas weekend after an unusually high number of baggage handlers called in sick.
The company, which is seeking concessions from the union representing mechanics and baggage handlers, has asked for employees to volunteer at Philadelphia from Dec. 30 to Jan. 3.
While the volunteers will not get paid, employees scheduled to work in Philadelphia over that period will get paid, a US Airways spokesman told Reuters.
"If you are an employee scheduled to work in Philadelphia, you will get paid. Aside from that, we are asking for employees to volunteer, in an effort to prepare for a very busy travel period this coming weekend," David Castelveter, US Airways spokesman, told Reuters.
Volunteers will be asked to meet and greet passengers at the ticket counters, security lines and baggage claim areas, as well as help on the ramp and the in the baggage sorting area.
Thousands of US Airways passengers were left stranded or separated from their luggage over the Christmas weekend. The airline said it has cleared its backlog of more than 10,000 pieces of misplaced luggage.
US Airways said the problems stemmed from flight attendants and baggage handlers calling in sick at about three times the normal rate.
The cash-strapped carrier has said it could begin liquidating in mid-January without concessions from its labor groups.
The Alexandria, Virigina-based company said it needs immediate labor savings of $1 billion from compensation packages and pensions to secure key financing agreements with its largest creditor, General Electric Co.(NYSE:GE - News), banks and the government. It must also have $250 million in new equity to attract investors.
US Airways is trying to dump contracts of unions that have not reached concession packages. Flight attendants, who last week reached a tentative deal for $94 million in annual concessions, have threatened to strike at the carrier if their contracts are voided.
The airline is still seeking additional savings of almost $60 million from flight attendant pensions and medical benefits for retirees.
Pilots and customer service agents have also negotiated giveback agreements.
