US Airways, Mechanics Agree On Concessions (pay cuts up to 18%)

[Rose Siding]

US Airways yesterday cleared a major hurdle in its effort to emerge from bankruptcy protection as its mechanics union approved a new concessionary contract that puts the carrier on track to its goal of cutting $1.04 billion in labor costs.

Union members voted to accept pay cuts of as much 18 percent. The contract, which will save US Airways about $350 million a year, also eliminates the mechanics' pension plan, reduces sick time and permits the Arlington-based airline to outsource maintenance work, which could result in the loss of about 2,000 jobs.
...
"Potential investors and creditors would be looking at industry trends such as competition and fuel prices. The timing is difficult because we're in a period when all the news about the airline industry is depressing," said Philip Baggaley, a Standard and Poor's credit analyst.

The contract's approval signals that the airline's most defiant workers may be willing to participate in its restructuring. Many mechanics voted in favor of the agreement, even with its pay cuts and job losses, rather than reject it and risk the airline's demise and the loss of all 30,000 jobs.

"The vote came down to choosing between bad and worse," said William O'Driscoll, president of union's District 142.

http://www.washingtonpost.com/wp-dyn/articles/A27373-2005Jan21.html

[geomon666]

1. Bad move.

Why on earth would you give up your pention plan without forcing the Execs to do the same? Why would you take up all of the sacrifice? Bad move guys.