Southwest Airlines Reaches Tentative Deal on New Labor Contract with Pilots Union

The new contract would provide raises and better benefits, following similar deals at other big airlines.

Southwest Airlines and Pilots Union Reach Agreement on New Contract

Southwest Airlines and its pilots union have reached a tentative deal on a new, five-year labor contract that would raise wages 50 percent over the next several years and increase retirement benefits. The union’s board unanimously approved the deal, which it said was worth $12 billion, on Wednesday. The agreement is now awaiting the vote of more than 11,000 union members, who have until Jan. 22 to cast their votes.

Benefits Similar to Other Major Airlines

The deal would provide benefits that are similar to those secured by pilots unions at the three other large U.S. airlines in separate negotiations this year. Pilots have had the upper hand in labor talks due to high demand amid the strong recovery in air travel after a steep decline in the early part of the pandemic. Capt. Casey Murray, the president of the Southwest Airlines Pilots Association, stated that the contract aims to close the gap between Southwest and its competitors in order to attract and retain pilots competitively.

Positive Response from Southwest Airlines

Southwest Airlines welcomed the deal, with Adam Carlisle, vice president of labor relations for the company, stating that the agreement would deliver “industry-leading” pay rates. Relations between Southwest and the union have been contentious in the past, with lawsuits and federal mediation over contract talks. However, this agreement marks a significant step forward in improving the relationship between the two parties.

Big Gains for Pilots Unions

Other pilots unions at major airlines have achieved significant gains in recent negotiations. Pilots at Delta Air Lines approved a contract that would boost wages by 34 percent over several years, while pilots at American Airlines approved a contract granting them a 46 percent raise. Pilots at United Airlines also approved a 40 percent pay increase. These contracts have put pressure on smaller carriers to improve pay and benefits to prevent pilots from leaving for larger employers.

Implications for the Airline Industry

Pilots at big airlines can earn six-figure salaries, with senior pilots earning several hundred thousand dollars a year. Labor and fuel costs account for about half of airlines’ operating expenses, and recent increases in these costs have raised concerns among airline executives about potential impacts on profits.

Approval and Future Contracts

If approved, the new Southwest deal would extend through December 2028. The contracts at Delta, American, and United are all in effect through at least 2026. However, there is no guarantee that Southwest’s pilots will approve the deal, as flight attendants at the airline recently rejected a deal, sending negotiators back to the table. Flight attendants at American and United are also currently negotiating new contracts.

Overall, the tentative deal between Southwest Airlines and its pilots union represents a significant step forward in improving wages and benefits for pilots. The agreement aligns with similar deals reached at other major airlines and highlights the increasing bargaining power of pilots in the current labor market. The outcome of the union vote will determine the finalization of the contract, which could have implications for the broader airline industry.