US Air secures tentative accord on dispatchers

September 22, 2004|By BLOOMBERG NEWS

NEW YORK - US Airways Group Inc., which filed for bankruptcy protection last week after failing to win concessions from workers, reached agreement yesterday with the Transport Workers Union on a cost-cutting contract for 151 flight dispatchers.

The accord will provide savings of $4.5 million to the Arlington, Va.-based airline, including lower wages, said Don Wright, president of the union's Local 545.

US Airways is seeking the concessions to help it cut $800 million in labor costs.

The agreement, which must be ratified by the employees and approved by U.S. Bankruptcy Court, "was painful but necessary," Wright said. Vote results will be released Sept. 30, he said.

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