The deal closes out more than 6 years of negotiations that included a lawsuit and an alleged worker slowdown.
Southwest Airlines Co. mechanics approved a new contract that provides pay increases and a retroactive bonus, closing out more than six years of negotiations that included a lawsuit and an alleged worker slowdown.
The deal provides employees $160 million in retroactive pay as a ratification bonus, an immediate 20% raise effective April 1, and 3% annual increases each August, according to an earlier statement from the union and Southwest. The workers rejected a previous proposal in September.The union’s national director, Bret Oestreich, thanked mechanics for their “patience, support and professionalism” over more than six years of talks with Southwest.
In addition, the Dallas-based carrier secured new work rules in the contract that are designed to increase productivity. Aviation regulators warned Southwest and the union March 8 that their contentious contract talks and legal fight were putting the carrier’s safety at risk. The Federal Aviation Administration urged the two sides to work cooperatively on safety issues. Southwest, which flies the most passengers on domestic flights among U.S. carriers, and the union reached an agreement eight days later.
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