by Southwest Airlines and its pilots union have reached a tentative agreement on a new five-year labor contract that would increase salaries by 50 percent over the next few years and increase retirement benefits.
The union’s board of directors unanimously approved the deal, which it said was worth $12 billion, on Wednesday, sending it to the union’s more than 11,000 members, who have until Jan. 22 to cast their votes.
The deal would provide benefits similar to those won by the pilot unions of the other three major U.S. airlines in separate negotiations this year. Pilots have had the upper hand in labor negotiations because they are in high demand amid the strong recovery in air travel after a sharp decline in the early part of the pandemic.
Capt. Casey Murray, president of the union, the Southwest Airlines Pilots Association, said the airline had begun to fall behind its peers in attracting and retaining pilots in recent years. “The goal of this contract was to close that gap so we could recruit and retain competitively,” he said in an interview.
Southwest welcomed the agreement. In a statement, Adam Carlisle, the company’s vice president of labor relations, said the deal would result in “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 the union began federal mediation in contract negotiations. In May, Southwest pilots voted to approve a strike for the first time in the company’s history, according to the union, although federal law prohibits pilots from walking off the job without first engaging in mediation and other measures.
Other pilot unions have made great strides. In March, Delta Air Lines pilots approved a contract that would increase salaries by 34 percent over several years. American Airlines pilots this summer approved a contract giving them a 46 percent pay increase, and United Airlines pilots approved a 40 percent pay increase.
All three contracts included improvements to vacation and retirement benefits and greater protections against last-minute reassignments. The Southwest deal will include similar improvements. New contracts at big airlines have also increased pressure on smaller airlines to improve salaries and benefits to prevent pilots from leaving for larger employers.
Pilots at large airlines easily earn six-figure salaries. More experienced pilots, who typically fly larger planes on longer routes, can earn several hundred thousand dollars a year. Labor and fuel account for about half of airline operating expenses. In recent months, airline executives have warned that such costs could eat into their profits.
If approved, Southwest’s new deal would run through December 2028. Delta, American and United’s contracts are all in place until at least 2026.
There is no guarantee that Southwest pilots will approve the deal. The airline’s stewards rejected a deal this month, sending negotiators back to the table. American and United flight attendants are also negotiating new contracts.
