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Judge Keeps Pay Cut at U.S. Airways

By Alabama Public Radio

Alexandria, VA – A bankruptcy judge is still imposing a temporary 21 percent pay cut on some U-S Airways workers. U-S- Bankruptcy Judge Stephen Mitchell issued the order last month to help the airline save cash and avoid liquidation. But lawyers for the International Association of Machinists and Association of Flight Attendants had asked the judge to reconsider. They say the airline requested steeper pay cuts than necessary. Meanwhile, the airline has asked the judge to terminate labor contracts with several of its employees. The company also wants him impose new contracts with pay cuts ranging from six percent to 27 percent. The Retirement Systems of Alabama has a controlling interest in U-S Airways.

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