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Agents, Flight Attendants Reach Agreements at US Airways, United
CWA-represented passenger service agents and flight attendants have reached agreements with US Airways and United Airlines, making yet another round of sacrifices to assist the carriers as they struggle to emerge from bankruptcy.
Agents at US Airways ratified the new agreement by a 60 percent vote. They agreed to an immediate average wage cut of 12.9 percent but won restoration of nearly all benefit cuts by the end of the contract in 2011 and agreement that all work will be done by bargaining unit members at that time. The agreement establishes an expanded wage scale for customer service, reservations, city ticket and club agents, with incremental wage increases of 13 percent over the contract term. The final increase takes effect January 2012.
"In bargaining, we were able to push back and reduce many of the worst aspects of the company's original proposals, including a wage cut of 34 percent and management's attempt to subcontract all jobs," said Chris Fox, president of Local 13302.
Flight attendants ratified a tentative agreement with US Airways by a 64 percent vote. It calls for an immediate 9 percent pay cut and termination of flight attendants' defined benefit pension plan, replacing it with a defined contribution 401(k) plan. Incrementally over the contract term, wages will rise by 10 percent with the last increase taking effect in January 2012.
The bankruptcy judge approved termination of pension plans covering flight attendants and machinists, along with the passenger service plan that was frozen in 1991. Those obligations will be transferred to the Pension Benefit Guaranty Corp., a federal agency, and US Airways will make a 3 percent contribution to workers' defined contribution plans. Most workers will not see a reduction in their benefits under the PBGC takeover.
AFA-CWA also reached a tentative agreement with United Airlines that provides the airline with contract changes and concessions as United continues to reorganize in bankruptcy.
That agreement, which would run through 2012, is subject to membership ratification; the AFA-CWA United Master Executive Council has unanimously recommended ratification.
The settlement calls for a wage cut of 9.5 percent and other reductions in benefits, but establishes a "success sharing" program with cash incentives based on United's performance.
Flight attendants have continually demonstrated an enormous amount of good faith in working to help struggling airlines like United and US Airways, said AFA-CWA President Pat Friend.
Greg Davidowitch, president of the AFA-CWA United MEC, said the union "fought management every step of the way to ensure that this agreement would not provide a penny more from flight attendants than is legally necessary. We sought to ensure that any contractual change would be shaped in a way that avoids destruction of our career."
Flight attendants had overwhelmingly, by an 88 percent vote, authorized strike action and implementation of the union's CHAOS program if their contract was abrogated as United had sought in bankruptcy court.
Agents at US Airways ratified the new agreement by a 60 percent vote. They agreed to an immediate average wage cut of 12.9 percent but won restoration of nearly all benefit cuts by the end of the contract in 2011 and agreement that all work will be done by bargaining unit members at that time. The agreement establishes an expanded wage scale for customer service, reservations, city ticket and club agents, with incremental wage increases of 13 percent over the contract term. The final increase takes effect January 2012.
"In bargaining, we were able to push back and reduce many of the worst aspects of the company's original proposals, including a wage cut of 34 percent and management's attempt to subcontract all jobs," said Chris Fox, president of Local 13302.
Flight attendants ratified a tentative agreement with US Airways by a 64 percent vote. It calls for an immediate 9 percent pay cut and termination of flight attendants' defined benefit pension plan, replacing it with a defined contribution 401(k) plan. Incrementally over the contract term, wages will rise by 10 percent with the last increase taking effect in January 2012.
The bankruptcy judge approved termination of pension plans covering flight attendants and machinists, along with the passenger service plan that was frozen in 1991. Those obligations will be transferred to the Pension Benefit Guaranty Corp., a federal agency, and US Airways will make a 3 percent contribution to workers' defined contribution plans. Most workers will not see a reduction in their benefits under the PBGC takeover.
AFA-CWA also reached a tentative agreement with United Airlines that provides the airline with contract changes and concessions as United continues to reorganize in bankruptcy.
That agreement, which would run through 2012, is subject to membership ratification; the AFA-CWA United Master Executive Council has unanimously recommended ratification.
The settlement calls for a wage cut of 9.5 percent and other reductions in benefits, but establishes a "success sharing" program with cash incentives based on United's performance.
Flight attendants have continually demonstrated an enormous amount of good faith in working to help struggling airlines like United and US Airways, said AFA-CWA President Pat Friend.
Greg Davidowitch, president of the AFA-CWA United MEC, said the union "fought management every step of the way to ensure that this agreement would not provide a penny more from flight attendants than is legally necessary. We sought to ensure that any contractual change would be shaped in a way that avoids destruction of our career."
Flight attendants had overwhelmingly, by an 88 percent vote, authorized strike action and implementation of the union's CHAOS program if their contract was abrogated as United had sought in bankruptcy court.