NYTimes.com Article: Southwest Air Labor Accord

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Southwest Air Labor Accord

June 26, 2004





DALLAS, June 25 (Reuters) - Southwest Airlines and the
union that represents its flight attendants said Friday
that they had reached a tentative agreement for a new
contract after more than two years of sometimes acrimonious
talks.

The union was the last major labor group at Southwest
without a new contract; the main stumbling block had been
wages. The union said the deal met its objective of
providing an "equitable compensation package."

Details of the deal were not released. The new contract is
subject to a vote of union members before it can take
effect.

"Whenever the union and the company have tried to solve
problems, and have really worked at solving the problem, we
have been able to be successful," said Thom McDaniel, the
head of the Transport Workers Union Local 556 that
represents the airline's flight attendants. The union
represents about 7,400 Southwest flight attendants.

Mr. McDaniel said the union had been in intensive talks
with top executives at Southwest for about 10 days. The
union plans to submit the deal to its members as soon as
possible so that they can vote on it, he said.

Shares of Southwest were up $1.23, or 7.8 percent, at $17
on the New York Stock Exchange yesterday.

Southwest submitted a new contract proposal to the union
early this year. Southwest said that under that deal, the
most senior flight attendants would get a 21 percent
increase in pay over the course of the contract, which runs
through 2008, while some junior flight attendants would see
a 111 percent increase over the course of the deal.

The union strongly disputed those figures and said the
airline overstated pay increases.

http://www.nytimes.com/2004/06/26/business/26air.html?ex=1089257426&ei=1&en=4196166d4d4db0c3


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