Southwest Airlines Co. announced today the approval of a new collective bargaining agreement benefiting approximately 18,000 workers, represented by the Transport Workers Union (TWU) Local 555. This agreement encompasses the second-largest group of employees among the airline's 12 labor contracts.
In addition to salary raises and a bonus, the new labor agreement incorporates clauses allowing Southwest to sustain investments in efficiency-driving sectors and facilitate Company-funded maternity and parental leaves. The contract with TWU 555 is subject to potential modifications until March 21, 2029.
A Labor Contract Aiming to Reward Airline Workers' Efforts
Adam Carlisle, Vice President of Labor Relations at Southwest Airlines, emphasized the importance of Ramp, Operations, Provisioning, and Cargo Agents to Southwest's experience, stating that this new labor contract will reward them for their work while placing them competitively in the industry.
The deal sets a top wage rate of $38 per hour, which TWU said last month surpassed United Airlines' current rate by 6.6%. It also enables employees to reach the highest pay level after ten years of service instead of 11.
Years of Pushing for Better Pay and Working Conditions
Over the past two years, unions representing pilots, flight attendants, and maintenance workers have pressed for improved wages and scheduling in a tight U.S. labor market.
Almost 20,000 flight attendants make up the largest union-represented group among Southwest's 12 employee groups. In January, the union announced that its members had voted overwhelmingly to approve a strike against Southwest for the first time.
In December, flight attendants voted against a previous tentative agreement. During the same month, the Department of Transportation mandated Southwest to pay a $140 million fine due to customer service shortcomings during a severe operational disruption in 2022.
Last month, the airline reached a tentative agreement with TWU Local 555, the union representing nearly 18,000 ramp, operations, provisioning, and cargo agents. The voting period to ratify that contract ended on Thursday.
Meanwhile, American Airlines flight attendants are currently engaged in contract negotiations with the Fort Worth-based carrier, holding informational pickets to highlight their concerns about the negotiation process earlier this year. The union had previously voted last year to authorize a strike.
Finally, Securing a New Labor Contract
Southwest announced a preliminary agreement with the flight attendants' union on Wednesday after two earlier attempts fell through. Adam Carlisle, Vice President of Labor Relations at Southwest Airlines, highlighted Southwest's Flight Attendants prioritizing customers' safety and comfort while delivering Southwest's renowned hospitality. He expressed satisfaction that they would have the chance to vote on the new agreement.
Since October 2022, Southwest has finalized contracts with ten unionized employee groups, totaling over 41,000 workers. These groups include Appearance Technicians, Customer Support Agents, Service Representatives, Help Desk Associates, Dispatchers, Facilities Maintenance Technicians, Flight Instructors, Material Specialists, Mechanics and Related Employees, Meteorologists, Pilots, and Ramp, Provisioning, Operations, and Cargo Agents.
Earlier this year, the airline also agreed with its pilots, promising approximately a 50% pay increase over five years.
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