Could a bigger cut sway US Airways staff?
The carrier plans to bulk up its profit-sharing plan to persuade employees to swallow part of the $1.5 billion in additional cuts it says it needs by the end of the summer, Reuters reports. The deal would be open to all employees, except senior officers — assuming there is no new bankruptcy declaration, CEO Bruce Lakefield said in a message to staff. He termed it a “good faith gesture” by the company’s principal owner, the Retirement Systems of Alabama, which “would be giving up a significant portion of its upside potential in any turnaround US Airways would enjoy to share these profits with the employees.” Employees would get cash as a percentage of annual pre-tax profits excluding unusual items. If US Airways’ profit margin falls between 0% and 5%, employees’ payout would be 10% of the profit. If the company is “fortunate enough to be even more successful,” the payout total rises to 25% of the pre-tax profit above the 5% level. “I’ve heard from a lot of employees that we need to chan
