By Susan Carey
A wide majority of the Southwest Airlines Co. flight attendants
turned down a new, six-year labor agreement that their union had
said would maintain their industry-leading wages, benefits and work
rules.
The attendants' current contract opened for renewal more than
two years ago, and the negotiations were difficult because
Southwest wanted to hold the line on its relatively generous labor
costs at a time it is generating strong profits. That was
underscored Thursday when Southwest reported its all-time best
result, profit of $608 million in the second quarter, up 31% from
the prior year.
In balloting that concluded Friday, 87% of the group voted
against the new deal, according to the Transport Workers Union.
Some 89% of the eligible group, 12,000 employees, participated in
the voting, the union said. "Our membership has given us our
marching orders," said Audrey Stone, union president. "The
terms...were passionately discussed, debated and ultimately
rejected by the employees."
The union said it would continue to talk with Southwest on terms
of a new contract. For now, the old agreement remains in force.
The Dallas-based discount carrier also is in negotiations with
its pilots, ramp workers and mechanics on new agreements, and the
pace of talks has been slow. The National Mediation Board, a
federal agency that helps in labor talks in the airline and
railroad industry, has been overseeing talks for the 8,000 pilots
and the 10,000 TWU-represented ramp workers.
Southwest said the rejected agreement ensured that the
attendants would stay atop in the industry in pay and benefits. It
also "improved the company's competitiveness with certain work-rule
changes and supporting our evolving network," said Randy Babbitt,
senior vice president of labor relations. "So naturally we're
disappointed that it didn't pass."
Write to Susan Carey at susan.carey@wsj.com
Access Investor Kit for Southwest Airlines Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8447411088