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USAIR/IAM AGREEMENT TO SAVE THE AIRLINE $60 MILLION THROUGH 1993 AND UP TO $50 MILLION ANNUALLY THEREAFTER

USAIR/IAM AGREEMENT TO SAVE THE AIRLINE $60 MILLION THROUGH 1993
 AND UP TO $50 MILLION ANNUALLY THEREAFTER
 ARLINGTON, Va., Oct. 13 /PRNewswire/ -- USAir said today that its new contract with the International Association of Machinists (IAM) calls for wage savings of $20 million over the next 12 months, through wage reductions and a pay scale freeze.
 In addition, the company will realize $40 million in productivity improvements in 1993. When fully implemented, annual productivity savings will reach $50 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 IAM-represented employees will have basic wages reduced by 3.5 percent for the next 12 months. This generates similar savings as an earnings-based, sliding-scale reduction adopted by the Air Line Pilots Association and the plan adopted for non-union USAir employees and management earlier this year. IAM-represented employees 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:
 -- Aircraft parking and push-back tasks may be performed by non- mechanic, IAM-represented personnel. This will free 335 licensed mechanics from the "push-back" chores to perform aircraft maintenance duties.
 -- At airports where USAir does not assign maintenance personnel, non-contract employees will be permitted to do non-airworthiness work such as aircraft cleaning and push-backs.
 -- Employees will staff heavy maintenance bases and related speciality shops seven days a week at normal pay rates. Many of these facilities have been operating five days a week with additional work done at overtime rates.
 In recognition of these substantive work rule and productivity enhancements, IAM-represented employees were granted a "no furlough" agreement for the duration of this contract. They will also receive pay increases starting in November 1993 which will bring them to industry competitive rates in 1995.
 -0- 10/13/92
 /CONTACT: USAir Corporate Communications, 703-418-5100 or 310-417-1294 (Western Region/
 (U) CO: USAir; International Association of Machinists ST: Virginia IN: AIR SU:


TW -- DC017 -- 9348 10/13/92 12:58 EDT
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Publication:PR Newswire
Date:Oct 13, 1992
Words:385
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