Southwest Airlines pilots ratify new five-year contract

The Southwest Airlines Pilots' Association, which represents 5,900 cockpit crew members, said over 87 percent of pilots voted in favor. More than 93 percent of eligible voters cast ballots.

The deal includes pay raises, an increase in the 401(k) match, a link between future compensation and profitability, scheduling changes, and limits on how much capacity Southwest codeshare partners can take.

"It goes without saying that this new contract was negotiated in good faith during a consistently challenging economic period for the airline industry," Southwest CEO Gary Kelly said in a news release. "Our pilots are the hardest working and most productive in the business and deserve a contract that reflects this, yet is still in keeping with the current uncertain economic outlook."

The pilots association said it achieved its top priority in the contract talks: limits to how much nonunion pilots can fly for Southwest.

"We are pleased this contract will strengthen our job protection language by eliminating the company's opportunities to hurt our pilot group in ways our peers have experienced," Capt. Carl Kuwitzky, the union's president, said in a statement. "However, we look forward to returning to the table in 2011 to focus strongly on areas that will likely be a higher priority, such as compensation."

The new contract limits codeshare flying to 4 percent of Southwest's capacity, as measured by seat miles, down from the 6 percent that was in the proposal that pilots rejected in June, said Jacob North, a Southwest pilot and the union's communications chairman.

The pilots' old contract broadly allowed Southwest to enter codeshare partnerships, so long as the airline's fleet size grew by 5 percent a year, said Neal Hanks, the union's communications director.

The new contract bars carriers from using regional jets when flying on behalf of Southwest and bars codeshare flying for Southwest done within the mainland U.S.

It allows Southwest to use codeshare partners to and from Canada, Mexico and the Caribbean, and within Hawaii, but not between the mainland U.S. and Hawaii, North said. Southwest already has a Canadian codeshare partner in WestJet, which flies all Boeing 737s, and a Mexican partner in Volaris, which flies all Airbus A320s.

The contract bars Southwest from using codeshare partners to fly between the mainland U.S. and Hawaii, which the old contract allowed. The now-defunct ATA Airlines flew codeshare routes to Hawaii from the mainland for Southwest.

North said the 737 was not out of the question on flights to Hawaii, noting that Alaska Airlines recently launched routes from the West Coast to the islands using the Boeing.

The new contract is retroactive to 2006 and opens for negotiations Aug. 31, 2011.

It calls for retroactive 2 percent pay raises for 2007 and 2008, and a 2 percent pay raise in 2011. Pay raises for 2009 and 2010 will depend on profitability, North said.

The new contract also calls for an increase in the airline's 401(k) contribution to 7.8 percent from 7.3 percent upon ratification, and another raise to 9.3 percent Jan. 1.

Southwest said the new contract "rewards SWAPA membership for the company's past two years of profitability, while making a critical move to tie the next two years' compensation to the company's financial performance."

In June, the union rank and file rejected a previous contract proposal, with 51 percent voting no. Key changes made to the new agreement include scheduling flexibility and the codeshare protections.

Southwest also signed new contract agreements with its flight attendants, mechanics, ground workers and customer service, gate and reservations agents this year.

Scott Nishimura, 817-390-7808

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