Southwest Airlines and its pilots union have reached a tentative agreement on a new, five-year labor contract that will raise wages by 50 percent over the next several years and increase retirement benefits.
The union board unanimously approved the deal, which it said is worth $12 billion, on Wednesday, sending it to more than 11,000 union members, who have until Jan. 22 to vote.
The agreement would provide benefits similar to those secured by pilot unions at three other major US airlines in separate negotiations this year. Pilots are at the forefront of labor talks because they are in high demand amid a strong recovery in air travel after a sharp decline early in the pandemic.
Capt. Casey Murray, the president of the union, the Southwest Airlines Pilots Association, said the airline has begun to lag behind its peers in attracting and retaining pilots in recent years. “What this contract is about is closing that gap so we can recruit and stay competitive,” he said in an interview.
Southwest accepted the deal. In a statement, Adam Carlisle, vice president of labor relations for the company, said the agreement will deliver “industry-leading” pay rates.
Relations between Southwest and the union have been contentious at times. In 2021, the union sued the airline over changes made by management during the pandemic. Last year, the company and union entered federal mediation in contract talks. In May, Southwest pilots voted to approve a strike for the first time in company history, according to the union, even though federal law prohibits pilots from walking off the job without first pursuing mediation and other more steps.
Other pilot unions have achieved major successes. In March, pilots at Delta Air Lines approved a contract that would increase wages by 34 percent over several years. Pilots at American Airlines this summer approved a contract giving them a 46 percent raise, and pilots at United Airlines approved a 40 percent pay increase.
All three contracts include improvements to vacation and retirement benefits and greater protections against last-minute reassignments. Southwest’s deal includes similar improvements. New contracts with major airlines also increase pressure on smaller carriers to improve pay and benefits to keep pilots from leaving for larger employers.
Pilots at major airlines can easily earn six-figure salaries. The most senior pilots, who typically fly larger planes on longer routes, can earn several hundred thousand dollars a year. Labor and fuel make up about half of airlines’ operating expenses. In recent months, airline executives have warned that such costs could push up their profits.
If approved, the new Southwest deal would last until December 2028. The contracts with Delta, American and United would be in effect until at least 2026.
There is no guarantee Southwest pilots will approve the deal. The airline’s flight attendants rejected a deal this month, sending negotiators back to the table. Flight attendants at American and United are also negotiating new contracts.
