US Airways mechanics agree to job cuts

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Another labor union at US Airways Group Inc. yesterday agreed to eliminate thousands of jobs in an attempt to help the airline emerge from its second bankruptcy in two years.

Changes approved by the International Association of Machinists and Aerospace Workers (IAM) will save the Arlington airline $346 million annually, the union said.

More importantly, concessions by the IAM could save the airline from what appeared to be certain liquidation four months ago when it filed for bankruptcy.

"US Airways management must utilize the advantage our members have provided, not squander it as they have done in the past. The company has everything it needs from labor to succeed. The pressure is now on management to deliver," said IAM General Vice President Robert Roach Jr.

The IAM is the fifth and final union to consent to deep cuts intended to save US Airways more than $1 billion annually in labor costs as it tries to transform itself into a low-cost carrier in the mold of profitable carriers like JetBlue Airways and Southwest Airlines.

Concessions by the 8,800 members of the IAM arguably represent the greatest sacrifice made by any of the labor groups at US Airways.

By approving changes to their contract, the airline's 4,600 mechanics agreed to let US Airways eliminate up to 2,000 of their jobs -- more than 40 percent -- and cut wages for those whose jobs are salvaged. Mechanics at the top of the pay scale will see their wages cut by 14 percent.

But not approving a contract with job and wage cuts could have pushed the company into insolvency and eliminated all jobs, union officials said.

"The vote came down to choosing between bad and worse," said William O'Driscoll, president of IAM District 142, which represents mechanics at US Airways.

The airline plans to outsource the 2,000 mechanics' jobs.