Unions Reach Agreement With US Airways
Unions representing passenger agents at the newly combined US Airways on Tuesday reached a preliminary deal with the airline, increasing wages while other contract terms are negotiated.
The deal raises the top wage for all 7,150 passenger service and reservation agents while the Communications Workers of America and the International Brotherhood of Teamsters negotiate with the company on transition details, including seniority, vacation and other concerns raised by the combination of two work forces.
America West Airlines took over US Airways in late September. The combined company kept the US Airways name.
The deal is the first that will govern the airline even after the Federal Aviation Administration officially recognizes the two airlines as one, a process that will likely take until 2007 even though the companies are operating as one financially.
US Airways CEO Doug Parker said the quick agreement with the agent unions was indicative of progress in combining the two airlines.
"Today marks an important milestone as we continue our integration," Parker said.
Combining the total work forces of the two companies, about 35,000 employees in all, is expected to be challenging. America West union employees have expressed fear that they'll be forced to take pay or benefits cuts that US Airways employees accepted while the old airline was in bankruptcy protection. Pilots have expressed fears over how seniority will be determined among the two fleets' pilots.
The deal with the passenger agents raises the maximum pay rate to $18 an hour. It had been $17 for agents from the old US Airways; it was $13 for America West agents, who voted to unionize last year and had not yet reached their first contract agreement before the buyout.
Candice Johnson, a CWA spokeswoman, said the agreement allows the agents from America West to begin making the transition onto the US Airways contract and releases the US Airways agents from a wage freeze put in place when the old airline was in bankruptcy.
"It's positive all-around. It allows the airline to go forward and continue with the transition," she said.
The deal is not subject to a vote because it does not change the terms of the contract, Johnson said.
CWA represented the old US Airways agents while the Teamsters represented the America West agents. The unions agreed to work together on bargaining with the company.
Galen Munroe, a Teamsters spokesman, said the union was pleased that negotiations were progressing.
"We're just happy that this has gone forward now," he said.
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