US Airways, Machinists Reach Impasse

Talks between US Airways and its Machinists broke down Tuesday, with the company saying union proposals to cut $100 million in costs just weren't enough.

US Airways is trying to avoid a second trip to bankruptcy court, after it emerged from Chapter 11 in 2002. To do that, the airline says it must cut $1.5 billion in annual operating costs by the end of the month. It wants workers to contribute $800 million of that, according to the Washington Post.

Union machinists rejected the demand for more salary cuts out of hand, but did offer to come up with operational changes that would save US Airways money.

But the airline wasn't having any of it. Spokesman David Castelveter told the Post the machinists' proposals didn't address the needs of the airline.

"We told them that it is time to immediately begin negotiations with the company and that the time for avoiding the real issues which confront us is over," he told the Washington newspaper.

A spokesman for the machinists' union, which represents mechanics and fleet service employees, refused to comment on the breakdown in negotiations.

www.usairways.com