Wed, Feb 28, 2007
Carrier Refused To Attend Arbitration
The International Association of
Machinists filed a federal lawsuit Monday, accusing US Airways of
using bankruptcy court protection to avoid giving pay raises.
The Arizona Daily Star reports arbitration on the matter was
scheduled to begin Tuesday, but US Airways filed a complaint in
bankruptcy court to block it, prompting the IAM lawsuit. US Airways
refused to attend the hearing, according to union
representatives.
"US Airways is attempting to use the bankruptcy court to shield
itself from its contractual obligations 17 months after exiting
bankruptcy," said IAM General Vice President Robert Roach, Jr. "If
companies can get bankruptcy court protection without filing for
bankruptcy, no business contract, labor or otherwise, is
enforceable. Lessors, vendors, bondholders, stockholders and other
creditors are also at risk."
US Airways spokeswoman Andrea Rader, told the Daily Star the
carrier concluded the dispute "was properly a bankruptcy
issue."
"The more we looked into it, we realized it shouldn't be in
arbitration," she said.
The union, which represents more than 100,000 airline employees,
says the 2005 merger of US Airways with America West forced a
change of control, that triggered contractual clauses guaranteeing
annual raises.
"US Airways is obligated to resolve collective bargaining
disputes through the process set forth in our contracts and the
Railway Labor Act," said Roach. "Companies can not hide in
bankruptcy court forever."
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