Southwest Airways reaches industry-leading deal (NYSE:LUV)

The Worldwide Affiliation of Machinists and Aerospace Employees (IAM) stated its members “overwhelmingly ratified” a brand new settlement with Southwest Airways (NYSE:LUV) on Thursday.

The union, which represents over 8,300 staff primarily in customer support, stated the new five-year contract provides its members a 13.1% wage enhance as of Thursday and a 25.1% common wage enhance over the following 4 years. The deal additionally features a “me too” clause to ensure industry-leading wages in addition to larger bonuses.

“IAM members at Southwest Airways stood collectively in solidarity to get the perfect deal within the airline {industry},” stated IAM Air Transport Territory Common Vice President Richie Johnsen. “We had been centered on securing an settlement that might make our members at Southwest Airways the highest-paid staff within the airline {industry}. Ratifying this historic deal was good for our members and the purchasers who belief and fly Southwest Airways.”

The union added that work/life stability enhancements had been made alongside time beyond regulation protections and “improved trip language.” Particular changes to contract language weren’t disclosed.

Learn extra on Southwest’s move to reinstate its dividend.