USAir calls off deal with unionsUSAir Group Inc. said...

BUSINESS DIGEST

July 29, 1995

USAir calls off deal with unions

USAir Group Inc. said yesterday that it has called off a proposed deal for wage concessions with its three major unions a week after reporting sharply higher earnings.

The airline took its offer off the table after the flight attendants' union this month rejected the tentative deal negotiated with pilots and machinists.

USAir instead will pursue savings of $500 million a year through collective bargaining with each union separately, spokesman Rick Weintraub said. The airline will negotiate with the three unions when their contracts come due over the next two years.

The wage concession and restructuring package traded greater job security and equity stakes in the airline for lower labor costs. All three unions had to agree before the deal could go forward.

Youth Services lands Pa. pact

Youth Services International Inc. said yesterday that Pennsylvania's Department of Public Welfare, Delinquency Division, has entered into a contract with YSI that will send 100 Philadelphia juveniles to be placed in YSI programs.

Each juvenile will be screened at YSI's Tarkio Academy in Tarkio, Mo., for placement in the most appropriate YSI program.

Henry D. Felton, president and chief operating officer of the Owings Mills company, said that, based on current per diem rates, the contract could generate about $3 million annually.

Radar contract to Westinghouse

Westinghouse Electric Corp.'s Electronic Systems Group said was awarded a $5.4 million contract to supply an air traffic control surveillance radar system to Airborne Express Corp.

The contract marks the first sale of a Westinghouse air traffic control radar to a nongovernment customer, the Linthicum-based unit said. The radar will be installed at Airborne's base at Wilmington, Ohio, by November.

Seattle-based Airborne Express provides rapid delivery of documents, letters and freight.

U.S. OKs Computer Associates deal

Computer Associates International Inc. said yesterday that it reached an agreement with the Justice Department that will permit it to complete its much-delayed $1.8 billion acquisition of Legent Corp.

The deal is the second-largest acquisition in the software industry, after International Business Machines Corp.'s $3.5 billion deal for Lotus Development Corp. Computer Associates and Legent specialize in mainframe computer software.

As part of its agreement with the Justice Department, Computer Associates is required to license four overlapping system management software products developed by Legent to rivals, on a nonexclusive basis.

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