Southwest reaches tentative deal with reservation, customer service agents

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Southwest reaches tentative deal with reservation, customer service agents

DALLAS (AP) =97 Southwest Airlines and the union representing its=
 reservation=20
and customer service agents have reached a tentative contract agreement,=20
which will be voted on by Jan. 30. Union representatives said the tentative=
=20
contract agreement covering about 10,000 Southwest workers was reached=20
faster than the industry has before seen. "Our negotiators weren't=20
distracted by the turmoil surrounding the industry," said Robert Roach Jr.,=
=20
International Association of Machinists and Aerospace Workers vice=20
president, in a statement. "They stayed focused and reached a tentative=20
agreement only six weeks after the contract became amendable. Even in good=
=20
times, that is unheard of for this industry." The proposed six-year=20
contract includes wage increases, an employee stock option plan and premium=
=20
pay for bilingual reservation agents, the union said Monday when it=20
announced the proposed contract. "Both parties came to the table and wanted=
=20
to hand write a win-win contract," Southwest Airlines spokesman Ed Stewart=
=20
said Tuesday.

Stewart said the proposed contract allows the airline to maintain its cost=
=20
structure while at the same time boosting the salary of "some great=20
employees." If ratified, the deal would run through October 2008, but it=20
could be reopened by the union for changes in 2006 if the airline's stock=20
doesn't perform to preset levels. The carrier, which is the most heavily=20
unionized U.S. airline at about 85 percent of its work force, has=20
negotiated four major contracts this year, including pilots and ground=20
staff. Stock options have sweetened several recent contracts for Southwest,=
=20
the only major U.S. airline to remain profitable every quarter since last=20
year's terrorist attacks. The low-fare carrier's flight attendants are the=
=20
last major employee group that has yet to agree upon a contract, although=20
those negotiations are proceeding well, said Stewart. Southwest accelerated=
=20
the pace of talks with its unions because it may not be able to grant stock=
=20
options for much longer. A proposed Securities and Exchange Commission rule=
=20
would prevent a company from granting the options to employees without=20
first gaining shareholder approval.


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