New ETF Book by Larry Connors - Click here to read more
Officials with Local 555 of the Transport Workers Union, which represents 7,200 ramp workers, freight agents and other ground-based employees, requested assistance from the National Mediation Board on Thursday. Airline executives joined union leaders in the request.
Under federal laws that govern airline labor relations, the board can step in if it determines that negotiations are at a standstill.
The move for mediation is a rare development at Dallas-based Southwest, which is renowned for its friendly labor relations. The airline is the most unionized of all the major U.S. carriers.
Union officials said wages are the primary issue.
"This development in our contract negotiations is very disappointing because Southwest has a long history of putting employees first," said Charles Cerf, the local union's president. Workers, however, "are struggling with everyday living expenses."
He said that wages among ground workers have not kept up with increases in the cost of living. Some union members haven't had a raise since 2005.
That's when the union accepted a two-year contract extension that included stock options instead of raises. But those options are triggered at $15.73 per share, union officials said, which is below the current value of the airline's stock.
Southwest (ticker: LUV | Quote | Chart | News | PowerRating) closed Thursday at $11.24 per share, up 40 cents.
Southwest spokesman Beth Harbin said the two sides have agreements on most issues unrelated to wages. And even when it comes to pay rates, she said, "We're only a few percentage points apart."
She said that going to mediation "is a good step, and we're confident we'll have a resolution soon."
Contract talks began in January, but little progress has been made when it comes to wages. Under the federal labor rules, a mediator will take over the talks and work to bring the two sides together.
At American Airlines, based in Fort Worth, pilots and dispatchers are currently in mediated contract talks.
If a mediator declares the negotiations at an impasse, talks are halted for a 30-day cooling-off period. At that point, the union is authorized to strike. But mediation often stretches for months or even years before an impasse is declared.
TREBOR BANSTETTER, 817-390-7064
To see more of the Fort Worth Star-Telegram, or to subscribe to the newspaper, go to http://www.dfw.com. Copyright (c) 2008, Fort Worth Star-Telegram, Texas Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
