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USAIR/AFA AGREEMENT TO SAVE THE AIRLINE $28 MILLION DURING FIRST YEAR AND UP TO $43 MILLION ANNUALLY THEREAFTER

 ARLINGTON, Va., March 19 /PRNewswire/ -- USAir said today that its new contract with the Association of Flight Attendants (AFA) calls for wage savings of $10 million over the next 12 months, through wage reductions and a pay scale freeze.
 In addition, the company will realize $18 million in productivity improvements over the 12-month period commencing April 1. When fully implemented, annual productivity savings will reach $43 million.
 "This agreement conforms with the pay and benefit reduction program that we announced in October 1991," said USAir Chairman, President and CEO Seth E. Schofield. "Through this plan, all employees have been asked to help the company with temporary salary reductions and long-term productivity improvements in exchange for profit sharing and stock option programs that become effective when USAir returns to profitability."
 All AFA-represented employees will have basic wages reduced for the next 12 months. This generates similar savings as an earnings-based, sliding scale reduction adopted by USAir employees and management earlier this year. Flight attendants will also join other employees in a newly implemented managed care medical program, which includes employee cost contributions of 10 percent.
 Productivity improvement features of the new agreement include:
 -- Less restrictive duty rigs (which dictate the hours to be
 flown and hours paid).
 -- More efficient reserve coverage, including a pool of flight
 attendants at stations to handle unforeseen staffing problems.
 -- More efficient scheduling parameters.
 In recognition of these substantive work rule and productivity enhancements, AFA-represented employees were granted a "no furlough" agreement for the duration of this contract. They will also receive pay increases starting in April 1994 which will bring them to industry competitive rates in 1996.
 /delval/
 -0- 3/19/93
 /CONTACT: USAir Corporate Communications, 703-418-5100/
 (U)


CO: USAir; Association of Flight Attendants ST: Virginia IN: AIR SU: CON

IH-TW -- DC021 -- 7997 03/19/93 16:09 EST
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Publication:PR Newswire
Date:Mar 19, 1993
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