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

DATE: WEDNESDAY, January 25, 1995                   TAG: 9501260066
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: The Washington Post
DATELINE: WASHINGTON                                LENGTH: Medium

UNIONS REMAIN AT ODDS ON HOW TO ABSORB CUTS

The three major unions at USAir Inc. struggled Tuesday to reach a pain-sharing agreement on how to absorb billions of dollars in wage cuts and contract concessions on the eve of a board of directors meeting to consider the airline's financial viability.

The unions are close to agreement on $1.75 billion in concessions, their share of the $2.5 billion in overall labor savings sought by the Arlington-based carrier, sources said, but a last-minute snag with the flight attendants' union threatened the agreement. The balance of the cuts will come from nonunion and management employees.

The three unions - the Air Line Pilots Association, or ALPA; the International Association of Machinists, or IAM; and the Association of Flight Attendants, or AFA - made progress late last week toward an agreement on how to apportion the cuts among themselves.

That came after USAir Chairman Seth Schofield and other top airline officers briefed union officials on the company's financial condition.

Union sources said they hoped to have an agreement on how to share the concessions in time for the board meeting. ``A deal could click at any time,'' said a union source.

Sources said the unions fear that if they cannot reach agreement, the board will end a moratorium on aircraft sales and reduce the size of the airline.

Last Friday, sources said, the pilots' union agreed to wage and benefit cuts of about $190 million, or 26 percen. The 5,196 ALPA members at USAir earn an average salary of $129,517 and account for nearly 31 percent of the company's total payroll.

The IAM has agreed to cuts of slightly more than 18 percent in wages and benefits for its 8,305 mechanics and ramp workers, who earn an average of $49,894. IAM members account for 18.9 percent of USAir's payroll.

The problem Tuesday was the AFA, whose 8,477 members are among the lowest-paid union workers, earning an average of $33,871 a year. The flight attendants account for only 12.9 percent of the airline's payroll.

When the pilots presented their proposed share of cuts, the percentage was based on a figure slightly less than the $500 million a year demanded by the company, sources said. ALPA asked the other unions to pick up the shortage - a total of about $2 million - and the flight attendants balked.

Union sources said late Tuesday that if no agreement was reached among the unions before the board meeting, ALPA and the IAM could take their proposal to the board and the AFA would go separately with its plan.

by CNB