US Airways Seeks to Cut Mechanics’ Wages

US Airways Group Inc. has asked its mechanics to absorb an initial wage cut and other concessions to speed its bankruptcy restructuring and boost its chances of getting government-backed loans, the mechanics’ union said.

Mechanics and others who earn more than $14.42 an hour would take a 6.8% wage cut upfront, according to a US Airways proposal revealed by the International Assn. of Machinists.

Workers at the airline who are paid less--mostly newer utility staffers and stock clerks--would have their wages temporarily frozen. The proposal also would cut vacations, holidays and sick days and eliminate the company’s matching contributions to 401(k) retirement plans.

If the machinists ratify the proposal, the union gets one seat on the company’s board.

The machinists union will bring the proposal to its members for a vote Aug. 28, union spokesman Joseph Tiberi said.

US Airways is seeking approval for $900 million in federal backing on a $1-billion loan.

The government’s Air Transportation Stabilization Board, which was set up after the Sept. 11 attacks to assist faltering airlines, last month gave US Airways conditional approval for the loan guarantee, but said it needed more sacrifices from workers.

David Castelveter, a spokesman for Arlington, Va.-based US Airways, emphasized the need to quickly seal deals with unions. He said the airline will ask a Bankruptcy Court judge Friday to set an Aug. 30 deadline for ratifying contract changes.

US Airways already has won about $550 million in annual cost reductions through deals with its pilots and flight attendants.

US Airways shares rose 7 cents to 47 cents on the so-called pink sheets market.