State of the Airlines

Monday, October 09, 2006

US Airways Showing Their Pilots Tough Love

I've posted that the pilots union at US Airways needs to be careful with the negotiation tactics. The airline has shown some slim profits but overall US Airways is still trying to bring their merger and their recovery to full fruition. In that post I cautioned that any demands for increased pay need to be balanced with some give backs on benefits and work rules.
So it shouldn't be a shock that US Airways just handed the union a laundry list of concessions they would like from their pilots. US Airways CEO, Doug Parker "...has repeatedly said the company cannot afford to increase its overall labor costs,...". The airline will take a tough stand in order to be a viable airline. But the pilots union is plenty mad about it saying US Airways "tossed the most onerous sick-leave policy in the industry across the table." Furthemore, the union is accusing the airline of backing out of a tentative agreement on sick leave and other benefits.
So where's the truth. As with most negotiations its somewhere in the middle. The whole thing is complicated by the fact that US Airways must find a way to unify the two pilot unions...pilot unions with very disparant contracts. Its going to be a long road.

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