After filing for bankruptcy protection back in September, US Airways is taking steps to cut costs.
Unfortunately for the Machinists of US Airways, this could mean up to 35 percent pay cuts and thousands of job losses.
Judge Stephen Mitchell ruled that US Airways is allowed to terminate pension plans and reject union contracts.
The judge said that his decision was, “which is worse that half of the mechanics lose their jobs or all of the mechanics lose their jobs? The ultimate question is whether there are going to be any jobs left at the end of the day.”
According to a Washington Post article,
“In a conciliatory gesture, the machinists union yesterday said it would not disrupt the airline’s operations leading up to the vote on the airline’s proposal. Leaders of the International Association of Machinists and Aerospace Workers, who had threatened a walkout if the union contract was nullified, agreed to present the airline’s latest proposal to the union’s 8,450 members for a vote. Details of the proposal were being finalized yesterday.”
“The union, which represents the airline’s mechanics, baggage handlers and fleet service workers, is expected to vote not only on the airline’s proposal but also on whether to authorize a strike should the majority of members oppose the new contract.”
“The machinists union is the only employee group that has not agreed on a new cost-savings plan. “
A request to terminate flight attendant pension plans was also approved by Mitchell.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
