US Airways Cuts Union Deal

Updated From Sept. 26

US Airways' (UAIRQ Quote) 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. ...