Southwest Airlines pilots ask for help from federal mediators in contract talks
Southwest Airlines Pilots’ Association said Thursday it has asked the National Mediation Board to help out in slow-moving contract talks with the airline.
“This is certainly not a step either side wants to take during negotiations, and certainly not a typical step in the pilot and management relationship at Southwest Airlines,” SWAPA president Mark Richardson said in the union’s announcement. “But times have certainly changed.”
The release said that “after two-plus years of negotiations both sides are currently too far apart to realistically expect an agreement outside of a mediated process.”
UPDATE, 12:40 p.m.: Southwest gave us this response from Randy Babbitt, Southwest’s senior vice president of labor relations (and former president of the Air Line Pilots Association):
“We have been optimistic that we were closing the gap to achieve a new agreement, but the SWAPA Board stopped further negotiations and has chosen mediation as its next step. We have the best, most professional pilots in the industry, and we want to ensure that they are not only fairly compensated for their excellence, but that their futures are secure.”
Babbitt said the airline had told the union it was willing to file jointly for mediation, a step that would have permitted “expedited mediation,” but that union declined the offer.
ORIGINAL ITEM: Southwest is currently in negotiations with most of its unions and has a tentative agreement with only one – the International Association of Machinists and Aerospace Workers, which represents airport and reservation agents. IAM members vote on their deal Dec. 2.
SWAPA was among the unions that sent a letter to Southwest chairman and CEO Gary Kelly in June warning that the “magic” was gone and that the carrier had to fix morale problems by giving unions new contracts.
The SWAPA contract, which covers more than 7,000 pilots, became amendable in August 2012. With SWAPA’s request, three unions have asked for mediation in their contract talks.
Keep reading for more from the SWAPA media release, as written.
SWAPA has focused their negotiations on improvements in areas that address the airline’s flat fleet growth, stagnant career advancement, and compensation. Over the past four years the pilots have sacrificed when asked by the Company. This facilitated Southwest reaching their financial goals, including a stated goal of 15 percent ROIC. Those goals have been accomplished, and furthered, with an announced ROIC total of 19 percent for the trailing 12 months, and a Wall Street expected 21 percent ROIC for fiscal year 2014. Southwest Airlines is on pace to enjoy almost $2.5 billion in operating profit for 2014.
“Our asks continue to be reasonable so that our highly productive pilots can enjoy marginal improvements in their schedule, pay, and especially retirement – an area where Southwest pilots lag significantly compared to our peers at other airlines,” continued Richardson. “Filing for mediation is the next step in the process toward a new contract. We are trying to avoid the destructive and combative relationships that have plagued our industry.”