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Bankruptcy Hearing Set for US Airways
The bankruptcy court has set a Sept. 10 hearing date to hear arguments on US Airways' bid to throw out its collective bargaining agreements with CWA and the Machinists.
CWA is continuing to bargain for a settlement on behalf of 7,200 agents and has made several comprehensive proposals in response to concession requests from the troubled airline. If an agreement is reached prior to the bankruptcy hearing, it will be presented to the members for a ratification vote.
If an agreement is not reached, CWA will make its case to the federal bankruptcy judge that agents have made substantial economic sacrifices to keep US Airways flying over the past 12 years and that the airline's concession demands are excessive and inequitable.
Among other demands, US Airways insists that agents contribute to relieve the shortfall of the defined benefit plan, however, this benefit was stripped from agents in 1990, before they won CWA representation. Not only would agents not receive the defined benefit pension, but also they would be forced to subsidize the pensions of higher paid employees, CWA said.
US Airways also refuses to take into account the 10-year wage freeze agents endured from 1989-1999 and the loss of other benefits that occurred before they voted for CWA representation.
The IAM-represented mechanics rejected a concession offer in an Aug. 28 vote. The pilots, flight attendants and fleet service workers (represented by the Machinists) have ratified new agreements with US Airways.
CWA is continuing to bargain for a settlement on behalf of 7,200 agents and has made several comprehensive proposals in response to concession requests from the troubled airline. If an agreement is reached prior to the bankruptcy hearing, it will be presented to the members for a ratification vote.
If an agreement is not reached, CWA will make its case to the federal bankruptcy judge that agents have made substantial economic sacrifices to keep US Airways flying over the past 12 years and that the airline's concession demands are excessive and inequitable.
Among other demands, US Airways insists that agents contribute to relieve the shortfall of the defined benefit plan, however, this benefit was stripped from agents in 1990, before they won CWA representation. Not only would agents not receive the defined benefit pension, but also they would be forced to subsidize the pensions of higher paid employees, CWA said.
US Airways also refuses to take into account the 10-year wage freeze agents endured from 1989-1999 and the loss of other benefits that occurred before they voted for CWA representation.
The IAM-represented mechanics rejected a concession offer in an Aug. 28 vote. The pilots, flight attendants and fleet service workers (represented by the Machinists) have ratified new agreements with US Airways.