News

As if bankrupt US Airways didn't have enough to worry about, now comes this: the threat of a strike.

The Communications Workers of America, which represents 6,000 gate and reservations agents, has sent out ballots to members seeking permission to call a strike if U.S. Bankruptcy Judge Stephen S. Mitchell voids US Airways' union contracts.

US Airways officials reacted forcefully to the CWA's action. They said that federal law prohibits an immediate strike, and that even the threat of a work disruption could scare away customers during the busy holiday travel season.

"The act of a strike would result in an immediate shutdown of the airline," Chris Chiames, US Airways' senior vice president for corporate affairs, told the Internet site "justplanenews.com."

"The CWA's action to conduct a strike vote is irresponsible and misleading," spokesman David Castelveter said.

The latest labor strife led Marick Masters, a University of Pittsburgh business professor, to conclude that US Airways' yearlong struggle for $950 million in labor savings would reach a head in the next few weeks.

"Either the unions make concessions or the airline is likely to liquidate in the near term,'' said Masters, who is writing an academic paper on US Airways' labor relations.

William Lauer, of Allegheny Capital Management, said that labor savings may be moot at this point. High fuel prices and cutthroat competition from low-cost carriers may kill US Airways first.

"All this hand-wringing over labor savings may be too little, too late," Lauer said.

US Airways, which filed for bankruptcy protection Sept. 12, has given three unions until mid-November to negotiate $650 million in wage and benefit cuts (pilots already have given $300 million in concessions). Airline officials said they would begin legal proceedings to cancel the labor contracts and have bankruptcy court impose new labor terms on workers if contracts are not reached by then.

Unions are preparing for the deadline with battle plans of their own.

CWA employees began receiving strike ballots yesterday, and they have until Nov. 10 to return them, said Chris Fox, president of CWA Local 13302 in Pittsburgh. There were no immediate plans for a strike, she added.

"We don't want to put the company out of business," Fox said. "It's management that's putting the company in that position."

Fox said that US Airways' demand for a 34 percent wage reduction leaves the CWA with no room to bargain.

"What incentive is there to vote for a contract that's going to put us out of work?" she said.

Talks between US Airways and the CWA resume Thursday.

The CWA isn't the only union girding for a fight. The International Association of Machinists and Aerospace Workers says it will oppose company attempts to outsource work that could lead to the elimination of 2,000 or more jobs in Western Pennsylvania.

"We think this proposal is extreme, and we are going to negotiate to save as many jobs as we can," said Frank Schifano, president of IAM Local 1976 in Pittsburgh and a member of the IAM negotiating team.

Talks between the IAM and US Airways resume Wednesday.

US Airways is seeking 23 percent wage cuts from baggage handlers, who are represented by IAM.

Teddy Xidas, president of Association of Flight Attendants Local 40, said the court-ordered wage cut already has depressed morale and driven workers out the door. She said that about 60 workers have resigned or retired in the past two weeks, compared with a normal attrition rate of about 15 a month.

Castelveter said company records indicate that 25 to 30 workers have left this month.

The court-imposed 21 percent wage cut began appearing in workers' paychecks yesterday. In his weekly recorded message, Chief Executive Officer Bruce Lakefield asked angry or disenchanted employees to refrain from expressing their anger by abusing sick time or customers.

"Now, more than ever, it's time to keep our focus and provide the safe and reliable transportation our customers expect and deserve," Lakefield said.

• Most Read
• Most E-mailed
• Latest News