PSA, Dispatchers’ Union Reach Agreement on Contract Changes
Pacific Southwest Airlines and the 12-member Southwest Dispatchers Assn. have reached an agreement on contract modifications demanded by USAir Group as part of its $400-million bid for PSA.
The San Diego-based airline previously negotiated a letter of agreement with the Air Line Pilots Assn. that represents 600 PSA pilots. PSA on Monday began negotiating with the International Brotherhood of Teamsters, which represents 3,200 PSA flight attendants, mechanics and station and reservations agents. And it continues to meet with union leaders who represent 45 crew controllers.
Teamsters officials told members Tuesday that “negotiations are progressing well” and that although “no agreements have been reached,” airline and union negotiators have discussed most of PSA’s proposed contract modifications.
The union representing PSA’s dozen dispatchers agreed to modify merger and acquisition language in their contract, as requested by USAir. In return, PSA and USAir granted income and job protection for the dispatchers.
PSA would not comment on the negotiations with the Teamsters, which last month asked a federal judge in San Francisco to force PSA into binding arbitration over the contract modifications being demanded by USAir.
Teamsters leaders in the past have told members that the contract language was necessary because it would protect Teamster-represented employees’ jobs and income if USAir eventually is merged with or acquired by another airline.
Consequently, the Teamsters on Tuesday described USAir’s bid Friday for Piedmont Airlines as a “serious factor . . . (that) must be considered” in negotiations with PSA.
USAir has made two takeover proposals for Piedmont, including a stock swap valued at $71 a share and a combination of cash and stock valued at about $68, according to Piedmont. However, a committee of Piedmont directors said Tuesday that it preferred a $65 cash bid from Norfolk Southern Corp., a holding company that owns the Norfolk Southern Railroad. Airline industry analysts have suggested that USAir is not, however, out of the bidding for Piedmont.
