This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

US Airways Cuts Union Deal

Updated From Sept. 26

US Airways' (UAIRQ) management wants to kiss those nasty labor contracts goodbye.

The struggling airline Sunday reached a tentative contract agreement with Transport Workers Union Local 547. The airline said the deal, which covers several dozen flight crew instructors, would cut costs and expects it to be closed within two weeks. Although the new deal helps somewhat, the vital issue remains settling with pilots, mechanics and flight attendants.

On Friday, U.S. Airways asked the court overseeing its bankruptcy case to impose a 23% pay cut on pilots and slash pension obligations, among other measures. The move would allow the cash-strapped carrier to temporarily sidestep negotiations on wage concessions and dictate terms to employees.

US Airways' decision could help the carrier conserve enough money to stay in compliance with its credit agreements. But the move also raises the possibility of further clashes with the airline's deeply divided pilots union.

The gambit comes a day after the pilots union agreed to return to the negotiating table to discuss the company's latest proposal for wage concessions. That package offered even deeper cuts than the one the union rejected two weeks ago. But with the potential for court-ordered wage cuts looming -- as well as liquidation -- the union remains hopeful it can reach consensus on concessions.

"While ALPA plans to oppose the motion in court, ALPA remains committed to reaching a permanent solution with management that will return the airline to sustainable profitability through engaging in earnest discussions with management on a comprehensive, consensual agreement," said Jack Stephan, spokesman for the pilots.

On Friday, US Airways' management planed to file a motion under section 1113(e) of the bankruptcy code that would allow it to temporarily impose work rules and new pay scales on all employees.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs