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US Airways pay cuts are kept in place
Bankruptcy court judge rebuffs efforts by two unions
Friday, November 19, 2004

U.S. Bankruptcy Court Judge Stephen Mitchell declined yesterday to reconsider the four-month, 21 percent pay cut he recently imposed on many of US Airways' unionized employees.

Attorneys for the flight attendants and machinists argued for a reversal of Mitchell's Oct. 15 decision, but the Alexandria, Va., bankruptcy judge saw no reason to change his mind.

He did, however, acknowledge the pain caused by his order, which was less than the 23 percent pay cut sought by US Airways. "I don't for one minute discount the hardship wage cuts had on employees," Mitchell said.

Mitchell called the decision he made last month one of the hardest of his career.

The temporary pay cuts will be in place until Feb. 15.

US Airways and its unions are scheduled to come before Mitchell again on Dec. 2, when the judge will hear the airline's request to abrogate contracts covering three unions -- the flight attendants, machinists and passenger service workers. The flight attendants and passenger service workers have threatened to strike if their contracts are thrown out.

But all three unions are hoping to reach consensual deals before the judge has a chance to act on the abrogation request. The flight attendants said they hoped to settle on terms by Thursday, Thanksgiving Day.

The company also is holding talks with the machinists and passenger service workers, but both unions are balking at the airline's proposal to outsource the jobs of 800 reservationists and 2,800 mechanics, cleaners and stock clerks.

The management-labor turmoil is having an effect on the airline's business, US Airways Chief Executive Officer Bruce Lakefield said yesterday during a break in the court hearing.

The nation's seventh-largest airline is experiencing a drop-off in bookings as it approaches the busy holiday travel season, and Lakefield attributed the downturn to the recent strike threats from unions. At the same time, he said: "Our employees keep working hard. They are professional." Workers "want this airline to survive as much as management wants this airline to survive."

First published on November 19, 2004 at 12:00 am
Dan Fitzpatrick can be reached at dfitzpatrick@post-gazette.com or 412-263-1752. The Associated Press and Dow Jones contributed to this report.