New Labor Contract Approved at US Airways

Mechanics and aircraft cleaners at US Airways have overwhelmingly approved a new five-year labor contract, eliminating a major strike threat at the nation’s sixth-largest airline. A spokesman for the International Assn. of Machinists said 74% of the members voting approved the contract, which covers 7,500 workers. IAM members had rejected an earlier contract agreement in July, and there was concern they might reject the latest offer as well. The new IAM contract provides base wage increases, a signing bonus and another bonus at the end of the agreement, as well as a change in work rules sought by the company to allow it to hire some part-time airplane cleaners. US Airways President Rakesh Gangwal, in a statement released by the airline, called the new contract “a major milestone on our path toward shedding our noncompetitive cost structure.” US Airways has some of the highest labor costs in the airline industry. The company has been insisting that its unions settle for what amounts to wage parity with the other major airlines, plus 1% to help make up for past wage and benefit concessions. US Airways shares rose $2.13 to close at $29.88 on the NYSE.