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."

FMI: www.usairways.com