Mechanics represented by the International Association of Machinists at US Airways ( UAWGQ) voted to reject the airlines' contract offer. Fleet workers in the same union approved the pact.

US Airways, the nation's seventh-largest airline, filed for Chapter 11 bankruptcy protection earlier this month, seeking $219 million in annual savings under a $1.2 billion restructuring plan. The airline was decimated by the terrorist attacks of Sept. 11, reporting a $2.1 billion loss in 2001.

Fleet workers, whose primary duty is to load luggage and freight, agreed to an 8% wage cut, with 2% to 3% increases from 2005 to 2008, according to the Associated Press. The baggage handlers also agreed to 10 fewer sick days, vacation days, and holidays. "Our fleet service workers have demonstrated outstanding personal commitment and vision in accepting this agreement. We are grateful for their decision to voluntarily participate in US Airways' restructuring," the company said in a press release. "Their personal sacrifice is an enormous contribution to help set US Airways back on the path to financial health."

Mechanics, however, gave the concessions the thumbs-down, rejecting a 7% pay cut now, followed by per annum increases of 2% in 2004 through 2007, and a 5% increase in 2008. They also nixed giving up nine sick days, vacation days, and holidays. "We are extremely disappointed by the vote of our mechanics. While we continue to work hard to achieve voluntary agreements with all of our labor groups, we now regrettably must pursue changes to the mechanics' contract through the bankruptcy court if we are unable to quickly reach a new agreement."

The pilots' union, flight attendants, and Transport Workers Union have reportedly agreed to a combined $552 million in cuts. Currently, US Airways is engaged in negotiations with the Communications Workers of America concerning wage and benefit concessions. Tentatively, the workers are being asked to accept $70 million in lost wages.

If you liked this article you might like

Ariba Plans to Restate Results Amid Probe

Ariba Plans to Restate Results Amid Probe

RadioShack Sees 13% EPS Growth Over Next Three Years

RadioShack Sees 13% EPS Growth Over Next Three Years

PanAmSat Posts Sharp Rise in Profit

PanAmSat Posts Sharp Rise in Profit

Adelphia Accounting Chief Pleads Guilty

Adelphia Accounting Chief Pleads Guilty

Skechers Sales Ahead of Plan

Skechers Sales Ahead of Plan