After years of contentious talks, Southwest Airlines and its pilot’s union, the Southwest Airlines Pilots’ Association, have reached a preliminary agreement on a new labor contract. The new four-year labor deal comes in the wake of a nearly four-year dispute between the two sides.
The agreement comes after years of negotiations between the two sides, with both sides trading allegations of unfair labor practices and accusations of speaking out of school. In 2014, the union filed an unfair labor practice charge, claiming Southwest had refused to bargain in good faith. The airline also accused the union of not operating in good faith and pressuring them to sign a deal that was too costly.
Under the terms of the new agreement, Southwest will increase wages, provide improved healthcare coverage, provide more job stability, and make other gains. A signing date for the agreement has not yet been set.
The two sides have been in negotiations since 2015, and the new contract will replace the current collective bargaining deal. The agreement is a major victory for the union, and a sign that the airline is serious about resolving its labor issues. It is a major win for southwest, as well, who now has a much better chance at retaining top talent and appealing to consumers.