USAir, Pilots Agree on Stock for Equity Swap

The pilots union and USAir have agreed on a transaction that would involve substantial concessions in pay and work rules by the pilots in return for board representation and stock. The proposal would only become effective if other labor groups at USAir reach a settlement. The proposal calls for employees, as a whole, to get 20% of the stock in the company and seats on the board. USAir's principal owners, British Airways and Berkshire Hathaway, have both expressed strong opposition to labor representation and stock ownership, but may have no choice if the company is to get concessions.