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Southwest Airways and its pilots union have reached a tentative deal on a brand new, five-year labor contract that will increase wages 50 % over the following a number of years and enhance retirement advantages.
The union’s board unanimously authorized the deal, which it mentioned was value $12 billion, on Wednesday, sending it to the greater than 11,000 union members, who’ve till Jan. 22 to solid a vote.
The deal would supply advantages which can be just like these secured by pilots unions on the three different giant U.S. airways in separate negotiations this yr. Pilots have had the higher hand in labor talks as a result of they’re in excessive demand amid the robust restoration in air journey after a steep decline within the early a part of the pandemic.
Capt. Casey Murray, the president of the union, the Southwest Airways Pilots Affiliation, mentioned that the airline had began to lag behind its friends in attracting and maintaining pilots lately. “What this contract was about was closing that hole in order that we may recruit and retain competitively,” he mentioned in an interview.
Southwest welcomed the deal. In an announcement, Adam Carlisle, vice chairman of labor relations for the corporate, mentioned that the settlement would ship “industry-leading” pay charges.
Relations between Southwest and the union have been contentious at instances. In 2021, the union sued the airline over modifications made by administration in the course of the pandemic. Final yr, the corporate and union entered federal mediation over contract talks. In Could, Southwest’s pilots voted to approve a strike for the primary time within the firm’s historical past, in accordance with the union, although federal legislation prohibits pilots from strolling off the job with out first pursuing mediation and different steps.
Different pilots unions have achieved massive good points. In March, pilots at Delta Air Traces authorized a contract that will increase wages 34 % over a number of years. Pilots at American Airways this summer time authorized a contract that grants them a 46 % increase, and pilots at United Airways authorized a 40 % pay enhance.
All three contracts included enhancements to trip and retirement advantages and higher protections in opposition to last-minute reassignments. Southwest’s deal will embrace comparable enhancements. The brand new contracts on the massive airways have additionally elevated stress on smaller carriers to enhance pay and advantages to maintain pilots from leaving for bigger employers.
Pilots at massive airways simply earn six-figure salaries. Essentially the most senior pilots, who usually fly bigger planes on longer routes, can earn a number of hundred thousand {dollars} a yr. Labor and gasoline account for about half of airways’ working bills. In current months, airline executives have warned that such prices may push down their earnings.
If authorized, the brand new Southwest deal would lengthen by December 2028. The contracts at Delta, American and United are all in impact by at the least 2026.
There isn’t any assure that Southwest’s pilots will approve the deal. The airline’s flight attendants rejected a deal this month, sending negotiators again to the desk. Flight attendants at American and United are additionally negotiating new contracts.
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