USAir
The airline's 4,600 mechanics agreed to let US Airways eliminate up to 2,000 of their jobs — more than 40 percent — and cut wages for those whose jobs are salvaged. Mechanics at the top of the pay scale will see their wages cut by 14 percent.
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The airline plans to outsource the 2,000 mechanics' jobs.
US Airways also plans to outsource some of the 4,200 baggage handlers' jobs and cut their wages by up to 20 percent. The airline has not defined the number of baggage handling jobs it will eliminate, but it reserves the right to make job cuts in 21 cities.
US Airways still faces a significant challenge before it can emerge from bankruptcy, which it must do by June 30, under the terms of agreements it has with creditors. The company must come up with $250 million in financing.
Concessions by the IAM may buy US Airways time to find money, but the union's conciliatory gesture doesn't ensure the airline's survival, said Robert Mann, president of Port Washington, N.Y., airline industry analyst R.W. Mann and Company Inc. "I don't think anyone believes that USAir is anything but a lifeboat with a lot of holes in it," he said.
The airline's problems are compounded by recent fare wars that started this month when Delta Air Lines cut some fares, and by Southwest's decision to begin flying to Pittsburgh, long regarded as US Airways' home turf.
washtimes.com
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Seems to me this baby is going under for the second time and will take a minimum of 10,000 jobs with it.
Mish |
