Fortune Sky is Your Go-to Source for the Latest Finance News, Covering Markets, Business, Industries and Internet.
⎯ 《 Fortune • Sky 》

Southwest has a labor deal with mechanics just days after flight attendants rejected theirs

2023-06-24 01:45
Southwest Airlines is making progress in contract talks with one union but suffering a setback with another
Southwest has a labor deal with mechanics just days after flight attendants rejected theirs

DALLAS (AP) — Southwest Airlines has reached agreement on a new labor contract with its mechanics just days after the flight attendants’ union rejected a company proposal.

Southwest said Friday that a tentative new contract with the Aircraft Mechanics Fraternal Association would give its mechanics industry-leading compensation.

Across the airline industry, revenue is rising as travel recovers from the pandemic. Unions are pushing airlines for better pay and benefits, even raising the threat of strikes to make their case.

At Southwest, leaders of the union representing more than 18,000 flight attendants voted this week to reject a tentative contract that its own negotiators reached with the Dallas airline and the help of federal mediators. The company said the deal would have raised pay 15%.

The flight attendants are working under wages and other terms contained in a contract ratified in 2016. By federal law, contracts in the airline industry do not expire, and it is difficult for unions to conduct legal strikes.

Pilots at Southwest, United and American are still negotiating with their airlines.

American announced a tentative deal with pilots last month, but the offer hasn’t gone to a ratification vote while both sides haggle over language and timing of some provisions. The Allied Pilots Association said Friday that American management “is simply unwilling to agree to be held accountable for the commitments it has made.”