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
TheStreet Open House

US Airways' Merger Hopes Shape Contract Talks

Flores said US Airways flight attendants do the same work as flight attendants at the Big Three and should receive the same pay. "We paid for the merger we have," he said, referring to contract concessions that enabled the carrier to emerge from bankruptcy. "Why should we pay for another one now?"

The company's first contract proposal offers already-promised increases: 1% in January 2011 and 3%, slated for January 2012, although Johnson said the company would move up the 3% increase by a full year.

The approximately 4,000 flight attendants from pre-merger US Airways, known as "the east," have different perspectives than the approximately 2,000 flight attendants from the former America West. Flores said west flight attendant raises would range between 13% at the top of the scale and 43% at the middle. "All the airline wants to do is to give the west pay parity," he said. "Not a single east flight attendant would vote for this."

But Johnson said moving up the scheduled increase would boost the payout to east flight attendants by "a significant seven figure amount" in the first year. He also said that increasing east vacation time to the level in the America West contract would cost the airline more than $10 million annually and would give 8 to 14 more paid vacation days annually to east flight attendants with eight or more years of experience. "It is effectively a big pay increase for east flight attendants," he said.

Flores said the proposal is unacceptable and the US Airways chapter will formally request to re-open its contract negotiations on Jan. 2, a move permitted under the current contract, which becomes amendable on Jan. 2, 2012, but has an early-open provision. Unlike the current negotiations, which are aimed at securing a joint contract, formal Section Six negotiations would be conducted under the Railway Labor Act process that enables mediation and potentially a job action if the talks fail.

Typically, the process takes years, but Flores said less time would be required because agreements exist on 25 of 33 contract sections.

Flight attendant negotiations have consumed about two weeks a month for the past 40 months. Johnson said the carrier wants a conclusion soon, after which it would step up talks with pilots. "We think an agreement with the flight attendants will be the inspiration to getting an agreement with the pilots," he said.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

Brokerage Partners

Rates from Bankrate.com

  • 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