AMFA Ratifies TA, Pilots Agree In Principle To Deal

Southwest Airlines announced Friday major steps forward in contract talks with two of the low-cost carrier's labor groups.

Maintenance workers represented by the Aircraft Mechanics Fraternal Association (AMFA) voted to ratify the tentative, four-year agreement both parties reached in early December 2008. The new contract is active through August 16, 2012, and will be signed in Dallas on Tuesday.

"I commend the negotiations Teams for delivering a contract that benefits our Employees and also positions Southwest Airlines for continued financial strength," said Gary Kelly, Southwest's Chairman, President, and CEO. "In light of these challenging economic times, the Teams delivered a cost neutral contract that protects jobs and preserves our unique and proud Culture."

Southwest says the new contract delivers raises in exchange for work rule improvements and scheduling flexibility along with productivity and gained efficiencies. It also offers Southwest's mechanics stronger job security and protection.

In a separate announcement, Southwest also said Friday it reached an agreement on principle with the Southwest Airlines Pilot Association (SWAPA) on a new, five-year agreement through August 31, 2011.

The current Southwest Pilot contract became amendable on August 31, 2006. As ANN reported, SWAPA voted prior to that date to start negotiations on a new contract, over the airline's offer of a one-year extension. The two sides began contract negotiations in September 2006.

Southwest says the tentative agreement delivers raises and increased retirement benefits for pilots. The agreement is still subject to finalizing language and approval by the SWAPA Board of Directors. If the SWAPA Board of Directors approves the tentative agreement, it will be presented to all members of SWAPA for review and a ratification vote.

FMI: www.southwest.com, www.amfanatl.org, www.swapa.org