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Pilots' agreeing to less pay lifts airline's hopes
"The fact that the pilots have been willing to begin negotiations is a clear sign that we share the same goal -- survival of the company," said David Castelveter, a USAirways spokesman.
The 3,200 active pilots are USAirways' highest-paid employees. They are being asked to give back the most -- $295 million, or about 37 percent of the $800 million that the company wants in labor-cost reductions.
The Air Line Pilots Association also agreed to increase the time that pilots fly each month -- from 85 hours to 90 hours -- in a proposal given to the company Thursday.
This is the third round of labor concessions that US Airways has sought from unions in the past two years. Employees gave back $1 billion in the two previous rounds.
The airline is racing to slash operating costs by $1.5 billion by mid-September so that it does not default on a federal loan -- an action that could force the company into bankruptcy and possible liquidation.
In this round, US Airways is benchmarking its pay scales against those of America West. According to a salary survey by Air Inc., US Airways pilots are paid, on average, about 12.5 percent more than their counterparts at America West.
"Clearly, this brings us down from where we are and puts us in the mix with the lowest of the low-cost airlines," said Jack Stephan, a pilots' union spokesman.
The pilots' proposal does not address such issues as vacation and retirement benefits -- areas in which the company also is seeking further concessions, Stephan said.
"Although it's less than our target, (the pilots' proposal) is a very good first step in working together," Castelveter said.
Company officials are reviewing the pilots' proposal, and no new talks are scheduled.
ALPA has been the most supportive union of US Airways' ambitious plan to remake itself into a low-cost carrier by slashing $1.5 billion from costs.
The other unions have sent mixed signals about granting more concessions. They say the pilots' offer will not influence their position.
Chris Fox, president of Communications Workers of America Local 13302 in Pittsburgh, said she is "surprised" by the pilots' offer.
"It still has to be ratified -- let's see if their members think this is a reasonable offer," Fox said.
Teddy Xidas, president of Local 40 of the Association of Flight Attendants, said the pilots' offer would have no impact on the other unions because each has its own distinct economic and productivity issues to settle with the company.
The pilots' high salaries -- an average of $144,000 for a captain with 10 years' experience -- make it easier for them to absorb a double-digit paycut, Fox said.
"With what they're making, it wouldn't put them in the poorhouse to accept a 12.5 percent pay cut, as it would with us," Xidas said.
According to the unions, US Airways' ticket, gate and reservations agents make an average of about $40,000 a year; flight attendants earn about $34,000 a year.
"A 12.5 percent pay cut for us is the difference between being lower middle-class and living on the poverty line," Xidas said.
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