Southwest Airlines transport workers approve new labor contract

Reuters

Published Mar 21, 2024 03:09PM ET

Updated Mar 21, 2024 03:26PM ET

(Reuters) -Southwest Airlines said on Thursday ramp, operations, provisioning and cargo agents approved a new five-year labor contract.

The contract covers 18,000 workers, represented by the Transport Workers Union (TWU) Local 555.

The agreement with Southwest constitutes a wage rate of $38 per hour at the top of the wage scale, which TWU had said last month was 6.6% above United Airlines' current industry leading rate.

The deal also allows workers to reach the top of the pay scale after 10 years of service instead of 11 years.

In the past two years, unions representing pilots, flight attendants and maintenance workers have sought higher wages, better scheduling and other benefits against the backdrop of a tight U.S. labor market.