Southwest Airlines, Union Ratify Contract

A union representing more than 7,000 ramp, operations, provisioning and freight agent employees at Southwest Airlines voted to ratify a three-year contract reached in February, Southwest said Friday.

The new contract is valid through June 30, 2011, and the agreement will be signed in a little over a week.

Under the terms of this contract, members of the Transport Workers Union Local 555 that have worked between one and 11 years will receive a 3 percent pay raise each year.

Top-paid employees will see a 3 percent increase the first year and a 2.5 percent bump the following two years.

"The pay increases were moderate, but they're guaranteed pay increases for the next three years for every employee," said Charles Cerf, president of TWU Local 555, which represents baggage handlers as well as staff who board and deplane the aircraft.

TWU Local 555 was also able to obtain medical benefits for retirees, which it did not previously have, Cerf said.

"It's a win-win," Cerf said. "If you have retirement benefits, you can retire earlier. The company can hire someone to replace you at the new hire rate."

About 7,400 employees will benefit from the contract, Cerf said.

Late last year, union members across the country began informational picketing after talks between Southwest, the largest US low-cost carrier, and TWU Local 555 stalled after the two parties could not agree on wages.