Southwest (LUV) Inks Tentative Deal With Flight Attendants
Southwest Airlines LUV received encouraging tidings on the labor front when it inked a provisional agreement with its flight attendants’ union, Transport Workers Union Local 556 or TWU556. The union covers about 20,000 attendants at the Dallas-based carrier.
Now the provisional deal will be voted upon by flight attendants. The deal will materialize only if the voting outcome is favorable. The deal, on becoming effective, will make flight attendants eligible for significant gains in compensation.
We remind investors that flight attendants at LUV had rejected a deal in December 2023. The company would be hoping that the tentative deal gets approved this time around.
With U.S. airlines grappling with pilot shortage as air-travel demand bounced back strongly from the pandemic lows, we have witnessed quite a few deals for various labor groups in the airline space recently.
In August 2023, American Airlines' AAL four-year pact with pilots was ratified. The approval has made AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average. Also, the deal included provisions aimed at improving pilots’ quality of life. In fact, improvements pertaining to the quality of life represent nearly 20% of the increased value of the new contract.
In March 2022, Delta Air Lines’ DAL pilots ratified a four-year deal, which made its 15,0000 pilots eligible for a 34% pay hike over the next four years.
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