- Southwest Airlines and its pilot union are nearing a collective bargaining agreement that will end months of contentious negotiations.
- The new contract is likely to include significant raises, as well as severance benefits and improved schedules.
- If the preliminary agreement is approved by the Southwest Pilots Association Board in the coming weeks, pilots will then be able to vote on ratification.
A Southwest Airlines Boeing 737-700 is seen landing at Ronald Reagan Washington National Airport in Arlington, Virginia at dusk.
Nicholas Economou | Nurfoto | Getty Images
Southwest Airlines and its pilots union sign a new deal that raises pay for the airline’s more than 11,000 aviators and ends months of contentious negotiations, just weeks before the crucial holiday travel season. is approaching.
The Southwest Airlines Pilots Association said in a message to its members Thursday that the airline and the union have reached an agreement on pay, severance and other benefits, but that the implementation schedule is still being finalized.
Delta Air Lines, United Airlines and American Airlines have already entered into billion-dollar negotiations with pilots this year as unions seek higher pay, improved schedules and other improvements after contract negotiations stalled due to the coronavirus pandemic. A collective bargaining agreement is being compiled.
If the preliminary agreement is approved by the Southwest Pilots Association Board in the coming weeks, pilots will then be able to vote on ratification.
The union and the airline did not disclose details of the agreement.
Southwest Airlines and the union are “working hard to eliminate the remaining few,” an airline spokesperson told CNBC. “Southwest remains committed to reaching an agreement that rewards and positions our pilots in a competitive position in the industry.”
Southwest Airlines reached a preliminary agreement with the flight attendant union earlier this fall that includes a 36% pay increase for flight attendants.
Strikes are extremely rare in the airline industry once a collective agreement is reached with pilots, but the recent period of tense negotiations between the company and its unions included laying the groundwork for a possible strike. There will be an end to it.
It is also the latest in a series of big labor deals this year, including deals with Hollywood screenwriters, actors and studios, and deals between automakers and the United Auto Workers union after strikes.
