Proposed concessions for IAM

US Airways’ management notified the employee representatives that an additional $200 million in annual cost reductions from changes in work rules and benefits are needed to help the bankrupt carrier improve its operations.

US Airways’ targeted cost reductions from District 141-M members include:

 Elimination of aircraft receipt and dispatch by Mechanic & Utility employees.
 Reduce the Utility function at PIT, CLT, and PHL to only thru-flight cleaning.
 Outsource lavatory and potable water servicing.
 Discontinue using Mechanics to de-ice aircraft.
 Outsource plant maintenance work.
 Outsource Ground Equipment maintenance (GSE) from all stations except BOS, CLT, LGA, PIT, and PHL.
 Daily maintenance checks to be performed by vendors.
 Eliminate occupational injury (OJI) bank.
 Delete real estate provisions in plant closings.
 Eliminate the two percent 401(k) match.

From District 141 members, US Airways is seeking to:

 Outsource aircraft catering without restriction.
 Outsource mail and cargo operations.
 Remove Fleet Service employees from Class II stations with less than 28 flights weekly.
 Add four daily mainline flights at Class II stations without adding Fleet Service personnel.
 Add seasonal mainline flights to express stations.

Additionally, US Airways is seeking the following changes that would affect all IAM members:

 Double employee contributions for medical benefits.
 Mid Atlantic contract provisions to mirror those at American Eagle.
 In case the United States goes to war with Iraq, US Airways will seek an immediate five percent “wage deferral” for up to 18 months.

In return, the company proposes to maintain a minimum of 279 aircraft and offered an “enhanced” profit sharing plan for participating employees.