Although talks on cutting labor costs continue between USAir Group Inc. and representatives of its 5,200-member pilots union, neither party believes an agreement will be reached by today -- the goal they had established for a settlement.
While the pace of the talks has intensified in recent days, the discussions still have not produced any agreement, according to union officials. A month ago, the two sides had targeted today for striking a deal.
"I wouldn't say we're discouraged, but I wouldn't say we're real cheerful either," said Richard Obermeyer, a spokesman in Pittsburgh for USAir's Master Executive Council (MEC) of the Air Line Pilots Association. "We still recognize there's a real, current need to get it done."
Richard Weintraub, a spokesman for the Arlington, Va.-based airline, declined yesterday to comment on the talks.
For the past month, negotiations have been continuing at the Washington law offices of former Virginia Gov. Gerald L. Baliles, who was named by federal transportation officials as a facilitator in the beleaguered company's efforts to obtain concessions from its pilots union.
After meeting into the evening Monday, the sides resumed talks early yesterday and met much of the day. Top officials from the airline -- including Chairman Seth E. Schofield and Frank L. Salizzoni, president and chief operating officer -- have joined the recent sessions, as have union leaders.
The employee givebacks are seen as critical to the plight of the nation's sixth-largest airline in its battle against low-cost, discount airlines.
Since 1989, the airline, which is the largest carrier at Baltimore-Washington International Airport, has lost nearly $2.6 billion and it is continuing to suffer huge losses this year even as other domestic airlines rebound financially.
Several months ago, USAir asked its major unions to cut $2.5 billion in labor costs over the next five years but the company has now increased that request, Mr. Obermeyer said.
Talks with the pilots have focused on the size of any givebacks and what workers get in return. In August, the pilots put forth a cost-cutting proposal which included $2.5 billion in employee concessions over the next five years. The pilots said they are willing to assume $750 million in cuts, with the remainder coming from other employees.
In return, the union is seeking a 25 percent worker stake in the company and four seats on its board.
The outcome of the negotiations with the pilots is expected to significantly influence USAir's discussions with its other unions representing flight attendants, machinists and other ground workers.