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November 24, 2009

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Union vote divided

Thursday, Aug. 29, 2002 | 11:27 a.m.

ARLINGTON, Va. -- US Airways' mechanics rejected wage and benefit concessions today, while workers who load luggage and freight accepted them.

The air carrier, which has filed for Chapter 11 bankruptcy protection, had sought a combined $219 million in annual savings from its largest union as part of a $1.2 billion cost-cutting plan. The divided vote amounts to a savings of $65 million, according to a union estimate.

The International Association of Machinists, which represents about 12,000 workers, voted separately on the concessions. Fleet workers, who load luggage and freight, approved the concessions by a 62 percent margin; mechanics and related workers rejected the proposal by a 57 percent margin.

The vote was intended to allow US Airways to gain access to $175 million in financing that is part of a larger $500 million package, according to court records.

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