Machinists union sues US Airways in wage dispute (Reuters)

[Omaha Steve]

http://www.reuters.com/article/mergersNews/idUSN2632125520070227

Machinists union sues US Airways in wage dispute
Mon Feb 26, 2007 7:38PM EST

NEW YORK, Feb 26 (Reuters) - A union representing machinists at US Airways Group Inc. (LCC.N: Quote, Profile, Research) filed a lawsuit in a federal court on Monday in the latest chapter in a 16-month dispute over hundreds of millions of dollars in wages.

The International Association of Machinists and Aerospace Workers said the suit claims that the airline is using bankruptcy court to avoid arbitration stemming from a union grievance filed in October 2005.

The union says agreements with the carrier entitle certain workers to higher wages in the event that the company is acquired and that this was the case when US Airways merged with America West in September 2005.

The company, which was in bankruptcy prior to the merger, says the transaction did not constitute a change in control, according to court documents.

FULL story at link.