Bankruptcy judge cancels machinists’ contract

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Thursday, Jan. 6, 2005 | 9:24 a.m.

ALEXANDRIA, Va. -- A bankruptcy judge on today canceled a collective bargaining agreement between US Airways and its machinists union, providing millions of dollars in annual savings that the airline says will prevent the need for a quick liquidation.

The termination of the contract with the International Association of Machinists would result in pay cuts for union workers ranging from 6 percent to 35 percent and the loss of thousands of union jobs.

US Airways lawyer Brian Leitch said today that the machinists union had agreed to send the company's best final offer to the union rank and file for a vote. If the union accepts US Airways' offer on Jan. 21, the judge's action canceling the contract would be nullified.