Southwest Airlines reaches deal with pilots

Southwest Airlines and its pilots union have reached a tentative deal on a new five-year labor contract that would raise wages 50% over the next several years and increase retirement benefits.

The union’s board unanimously approved the deal, which it said was worth $12 billion, on Wednesday, sending it to the more than 11,000 union members, who have until Jan. 22 to cast a vote.

The deal would provide benefits that are similar to those secured by pilots unions at the three other large U.S. airlines in separate negotiations this year. Pilots have had the upper hand in labor talks because they are in high demand amid the strong recovery in air travel after a steep decline in the early part of the pandemic.

Capt. Casey Murray, union president of the Southwest Airlines Pilots Association, said the airline had started to lag behind its peers in attracting and keeping pilots in recent years. “What this contract was about was closing that gap so that we could recruit and retain competitively,” he said in an interview.

Southwest welcomed the deal. In a statement, Adam Carlisle, vice president of labor relations for the company, said the agreement would 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 the union entered federal mediation over contract talks. In May, Southwest’s 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 pursuing mediation and other steps.

Other pilots unions have achieved big gains. In March, pilots at Delta Air Lines approved a contract that would boost wages 34% over several years. Pilots at American Airlines approved a contract this summer that grants them a 46% raise, and pilots at United Airlines approved a 40% pay increase.