Southwest Airlines and the Transport Workers Union Local 555 (TWU 555) reached a tentative agreement for the airline's ramp, operations, provisioning, and cargo agents.
"Our hardworking Ramp, Operations, Provisioning, and Cargo Agents serve a valuable role in helping Southwest Airlines by providing a great experience for our customers," said Adam Carlisle, vice president, labor relations, Southwest Airlines. "I'm pleased with the work by both parties to reach a Tentative Agreement that would offer Employees well-deserved compensation increases and give Southwest needed efficiencies to keep us competitive."
The new contract includes industry-leading wages of $36.72 per hour, as well as caps on insurance premiums, improvements in retirement, job protections, and better staffing. Apart from this, parental leaves and premium pay days will also be offered to the employees. Union members still have to vote to ratify the contract.
This news follows the July 27 ratification of a collective bargaining agreement between Southwest and the Aircraft Mechanics Fraternal Association (AMFA), which covers the airline's 2,870 mechanics and other related employees.
However, Southwest has yet to reach a tentative agreement with the Southwest Airlines Pilots Association, which asked federal regulators to be released from mediation last month. With the union pilots already voted to authorize a strike, there's a possibility Southwest’s smooth operations might be in trouble.