On Thursday, the International Association of Machinists and Aerospace Workers Union (IAM) announced that Southwest Airlines customer service employees ratified the new five year collective bargaining agreement the union negotiated, which will give employees an immediate 13.1% salary increase.
8,300 customer service representatives and service agents will be covered by the new agreement, which will provide them with a 25.1% general wage increase over 4 years. IAM noted that would put Southwest employees at the top of the industry’s pay scale for customer service employees.
The agreement will also give employees other benefits, including higher bonuses, as well as improved mandatory overtime protections for all employees.
In a published statement, Adam Carlisle, Southwest vice president of labor relations, said, Southwest is, “extremely pleased we can reward them with this new contract, which demonstrates the value they bring to Southwest and is designed to give us additional efficiencies to operate our airline.”
Airline employees have found themselves in the driver’s seat in labor negotiation of late as airlines find themselves shorthanded in meeting the rising demand for air travel following the end of the Covid-19 pandemic lockdowns in early 2020.
As it happens many US airlines happen to be negotiating labor deals just at this moment with unions, including many which are in negotiations with their pilots, which are in especially low supply. Presently Southwest Airlines is in negotiations with their pilots, working on a new contract.
Earlier this month, Delta Airlines reached a tentative agreement with their pilots in principle, which will include a 34% cumulative pay raise over three years. Delta also offered a one-time lump sum payment, reduced health insurance premiums, as well as improvements in holiday pay, vacations, company contributions to 401(K) accounts, and work rules.