Now Under Review By Members For Ratification

On Sunday, the International Association of Machinists and Aerospace Workers (IAM) announced a tentative agreement with US Airways covering the carrier's 7,700 Fleet Service workers -- a significant step towards merging the workforces of US Airways and America West.

"US Airways' bankruptcies wreaked havoc on employees," said IAM General Vice President Robert Roach, Jr. "The negotiating committee has given the members the opportunity to vote on a contract with immediate improvements in wages, job security and pension benefits."

The negotiations were prompted by last year's merger between US Airways and America West Airlines. The tentative agreement provides a single contract and uniform terms for all fleet service employees for the first time.

"We were able to do more than just combine the two airlines' contracts," said District 141 President Randy Canale. "This tentative agreement ensures our members benefit as US Airways charts its course for the future."

The tentative agreement includes substantial wage increases and calls for a single pay scale for all Fleet Service employees. The accord also improves the scope of work performed by IAM members and provides increased contributions to the IAM National Pension Plan, the only defined benefit pension plan remaining at US Airways.

"Today's announcement moves us another step closer to a unified airline and our goal of bringing our remaining groups to single labor agreements," said US Airways CEO Doug Parker.

The IAM negotiating committee unanimously recommended membership ratification of the agreement. Results are expected to be announced on September 5, 2007. If ratified, the agreement will become amendable on December 31, 2011.

Negotiations for 2,900 Mechanic & Related employees represented by IAM District 142 are continuing with the assistance of a facilitator from the National Mediation Board.

FMI: www.iam141.org, www.iamdl142.org, www.usairways.com