
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, August 6, 1994                   TAG: 9408080024
SECTION: BUSINESS                    PAGE: A6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: ARLINGTON                                 LENGTH: Medium

USAIR REJECTS PILOT OWNERSHIP PLAN

USAir rejected its pilot union's offer of wage concessions in return for part ownership, but the financially ailing airline suggested Friday it was willing to continue talks.

``While some aspects of ... [the Air Line Pilots Association] proposal offer hopeful prospects for future negotiations, a number of provisions are unacceptable,'' the airline said in a statement from its headquarters.

ALPA, which represents 5,200 USAir pilots, offered Wednesday to swap $750 million in wage concessions for partial employee ownership of the airline.

USAir described the savings as illusory because they included future salary and longevity increases.

``The net result is that actual savings fall far short of what is needed, even before considering the financial benefits the pilots are seeking in return,'' it asserted.

The company said any concessions must be based on April levels for the airline to remain ``a viable competitor.''

The ALPA proposal, which also called for $1.75 billion in concessions from other USAir unions, was rejected Thursday by the Association of Flight Attendants. Other USAir employees are represented by the International Association of Machinists and the Transport Workers Union.

The union said its members make up 12 percent of the USAir work force and would shoulder 30 percent of the labor cost reductions.USAir also said it rejected ALPA's proposal of equal percentage reductions in salaries for all employees regardless of income level, which it said ``would cause lower-paid employees to subsidize higher-paid employees.''

ALPA said its proposed concessions represent about 20 percent of the pilots' average $100,000-a-year salaries.

The USAir statement also said the ALPA proposal ``would largely disenfranchise USAir Group's common shareholders, who have already experienced a market loss in the value of their ownership.''

``Additionally, under ALPA's proposal, the public common shareholders would have no voice in the selection of director nominees and little voting influence in the election of directors,'' it added.

by CNB