Southwest Airlines is offering bigger raises and sign-on bonuses to help secure a deal with one of its largest labor groups after coming to a proposed contract agreement with the union representing 8,300 customer service workers.
The new deal would give 16% to 25% wage increases over five years and signing bonuses of at least $1,000 and better overtime protections to customer service representatives, customer service agents and source of support representatives at the airline.
The deal is a 5.5% to 13% wage improvement from the contract that union members “overwhelmingly rejected” in May. That left airline and union leaders searching for solutions that would satisfy one of the company’s largest labor groups.
“Our members made it clear that they demand and deserve the best contract possible from Southwest Airlines,” said International Association of Machinists and Aerospace Workers District 142 President John M. Coveny Jr. in a statement. “We’re proud to present this industry-leading contract as a testament to their strength and solidarity.”
The union is the fourth largest at Southwest Airlines behind pilots, ramp workers and flight attendants. But customer service workers also tend to be in the lower-paid tier behind mechanics, pilots and flight attendants. Demand for customer service workers has been high during the last two years, forcing companies such as Southwest to raise wages to compete.
Southwest has already boosted its starting pay from $13 to $17 an hour.
The airline is also in contract negotiations with groups such as pilots, flight attendants and ramp workers.
The new deal with customer service workers also gives paid parking, a mandatory 10-hour rest period between shifts and a 32-hour monthly cap on forced overtime.
It usually takes about six weeks after a deal is bargained to hold a vote, which must be approved by a majority of members.
