Southwest reaches tentative contract with 18,000 transport workers after they rejected an earlier proposal
By Steve Gelsi
Carrier said it's agreed to new labor pact for its ramp, operations, provisioning and cargo agents
Southwest Airlines Co.'s stock rose Thursday after it said it reached a tentative agreement with the union that represents 18,000 of its staff that handle baggage, provisions and cargo for the carrier.
Southwest shares (LUV) were up 0.7% in premarket trading as it confirmed a new pact with Transport Workers Union Local 555, which includes its agents that handle ramp duties, operations, provisioning, and cargo.
The new contract proposal will now go before union members for a ratification vote.
The agreement comes after transport workers rejected an earlier agreement in a vote on Sept. 20.
Some of the changes from the rejected contract include wage increases at every step, and reduction of the current 13-step wage scale to an 11-step wage scale, according to a posting on the union's website.
The new contract would pay a combined lump sum bonus of $140 million, up from $70 million.
For retirement, it boosts the employer contribution to 10% of an employee's eligible compensation, from 9.3%.
The contract includes base salaries of $19.45 an hour in 2024 for new hires for ramp and provision work and up to a maximum of $38 an hour. The wage would increase by 3% per year over the next four years.
For new hires in operations and cargo, new hires will earn $19.80 an hour and up to $38.35, with 3% annual raises through 2028.
In January, Southwest airline's flight attendants authorized a potential strike. TWU Local 556 said at the time that 98% of participating union members OK'd a potential strike, which was the first time that had happened. That contract remains unresolved.
Meanwhile, Southwest pilots in January ratified a contract that offered to increase their pay by almost 50% by 2028.
Delta Air Lines (DAL) and American Airlines (AAL) have also inked new contracts with pilots in the past year.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-22-24 0741ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening in the Markets This Week
-
4 Top Dividend-Paying REIT Stock Picks
-
After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?
-
P-CAPE: A Better Way for Investors to Estimate Future Returns
-
Which Stocks Have Driven the Stealth Large-Value Rally?
-
Forecasts for Q2 GDP Report Show a Healthy but Slowing Economy
-
5 Stocks to Buy as the Market Rally Broadens
-
4 Top US Travel Stock Picks
-
How Do Interest Rates Affect Stock Market Returns?
-
American Airlines Earnings: Ticket Distribution Misstep Affected Results
-
Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
3 Top Cybersecurity Stock Picks for Long-Term Investors
-
AbbVie Earnings: Firm Sees Strong Next-Generation Immunology Drugs Sales
-
Ford Earnings: Warranty Problems on Older Vehicles Slam Results
-
ServiceNow Earnings: Operating on a Higher Plane Within Enterprise Software