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USAIR/ALPA CONTRACT WILL SAVE THE AIRLINE $70 MILLION OVER THE NEXT 12 MONTHS AND UP TO $100 MILLION A YEAR

USAIR/ALPA CONTRACT WILL SAVE THE AIRLINE $70 MILLION OVER THE NEXT
 12 MONTHS AND UP TO $100 MILLION A YEAR
 ARLINGTON, Va., June 3 /PRNewswire/ -- USAir said today that its new contract with the Air Line Pilots Association (ALPA) calls for wage reductions of more than $55 million over the next 12 months. In addition, immediate productivity improvements of $15 million will be realized over the next 12 months for a total annual savings of $70 million. When fully implemented the contract will save the company up to $100 million a year.
 The contract calls for other substantive work rule changes which include duty rigs (which dictate the hours to be flown and the pay hours for payroll purposes), flexibility in scheduling, aircraft grouping for pay and training purposes and various other work rule related items that result in the $100 million annualized cost savings. Included in these savings are changes in flight attendant duty rigs which will go into place as a result of the "me too" provision of the flight attendant agreement.
 "The agreement is in keeping with the pay and benefit reduction program we outlined to our employees and shareholders in October 1991 to reduce the cost of doing business while maintaining the quality of our service," said USAir President and CEO Seth Schofield.
 "As we said last year, the employees have been asked to help the company with immediate salary reductions and long-term productivity improvements in exchange for profit sharing and a stock option program," continued Schofield.
 The productivity improvements are triggered at various times over the four-year contract which ends April 30, 1996. Also included is an agreement by the pilots for a newly implemented managed care medical program, which will include pilot contributions of 10 percent.
 In recognition of these substantive work rule and productivity enhancements, the active pilots have achieved levels of "scope" protection, specifically a "no furlough" agreement for the term of this contract. They have achieved other changes to the "scope" language in keeping with other standard industry agreements.
 As a result of the ALPA agreement, a wage reduction program for the non-contract employees was implemented on June 1 as well. This is in keeping with the program announced in October 1991 which stated that the non-contract wage reduction program of $21 million would not be implemented until the first major union agreement reducing wages was reached.
 Prior to the agreement a pension freeze for non-contract employees was implemented which saved the company $56 million. A managed care program for non-contract employees was also implemented which is estimated to save $20 million a year.
 -0- 6/3/92
 /CONTACT: USAir Corporate Communications, 703-418-5100, or 213-417-1294 (Western Region)/
 (U) CO: USAir; Air Line Pilots Association ST: Virginia, District of Columbia IN: AIR SU: CON


DS -- DC002 -- 6488 06/03/92 08:41 EDT
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Publication:PR Newswire
Date:Jun 3, 1992
Words:472
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