The International Association of Machinists and Aerospace Workers (IAM) District 142 has confirmed membership ratification of a new collective bargaining agreement with Southwest Airlines. The four-year agreement covers the carrier's 5,300 customer service and reservation agents and was approved by 54 percent of the members voting.

"This agreement provides financial security for our members while giving Southwest Airlines the stability it needs to continue growing in a very difficult economic climate," said IAM District 142 President Tom Higginbotham.

The new agreement provides an immediate three percent wage increase, retroactive to November 1, 2008, with top pay increasing to $26.61 per hour over the life of the accord. Other improvements include a significant increase in retirement benefits, with company-paid 401(k) contributions increasing one percent, to 8.3 percent, retroactive to January 1, 2009. The contract calls for Southwest to again increase 401(k) matching contributions to 9.3 percent on January 1, 2011.

The previous IAM-Southwest Airlines collective bargaining agreement became amendable on October 31, 2008, and a tentative agreement on new terms was reached on May 5, 2009. This new agreement becomes amendable on October 31, 2012.

FMI: www.goiam.org