The Southwest Airlines Company (NASDAQ:LUV) is going leaps and bounds in order to please its staff. The Dallas based airline company has entered into a contract agreement with the union that represents its flight attendants.
This has been done in order to evade the ensuing mess within the airline company. The deal will make sure that the wages of the flight attendants will be increased. Other bonuses are also promised to the staff in addition to a salary hike.
The copy of the tentative agreement will be sent to the members to seek votes on the same. It will be sent later this month by the Transport Workers Union Local 556 that is represented by 12,000 flight attendants at Southwest. If it is accepted by the flight attendants, the contract will run between the two parties until May 2019.
The terms of the four year contract have not been released yet, but the airlines have confirmed a salary hike for the flight attendants. It is one of the main points of the contract. It will also help employees get possible bonuses and changes in work rules.
According to the workers union; if the contract materializes, the salary of Southwest’s flight attendants will be maximized in the whole industry.
The TWU Local 556 president, Audrey Stone stated, “You’re going to see an agreement that not only maintains but improves our industry leading contract including your wages and your benefits”.
Mike Van de Ven, the chief operating officer of the Southwest airlines believes that the tentative agreement would not only provide additional money to the staff but also support the low cost structure of the Southwest airlines. It will also give the airlines a competitive edge over the others in the industry.
It is important to note that the Southwest Airlines was comprised of 11,850 flight attendants as of December 31, 2014. The contract talks have prolonged for 2 years and finally, it is close to being materialized.