Southwest pilots union leaders endorse contract, Ground workers ratified theirs

[Omaha Steve]

http://www.businessweek.com/ap/financialnews/D976IGNO1.htm

The Associated Press March 27, 2009, 3:26PM ET

Ground workers at Southwest Airlines Co. ratified a three-year labor contract calling for pay raises, and directors of the pilots' union recommended that its members approve a tentative agreement with the low-fare carrier.

Southwest said Friday that ramp workers and freight agents represented by the Transport Workers Union voted to ratify a deal announced in February. It will be signed April 7 and run through June 2011, the airline said.

Details were not disclosed, but the company said the contract provided raises for about 7,780 workers in exchange for work rule changes and scheduling flexibility.

Separately, the Southwest Airlines Pilots Association said that its five-year tentative agreement would raise pay and retirement benefits for the carrier's 5,900 pilots. It did not disclose details of the agreement, which negotiators for the company and union reached in January.

Union President Carl Kuwitzky said the contract would allow code-sharing -- letting Dallas-based Southwest sell seats on flights operated by other carriers -- but would include limits on the practice to protect Southwest jobs.

The contract would be retroactive to 2006 and run through August 2011. The union said the ratification vote would take place in the coming weeks.

Southwest shares fell 17 cents, or 2.6 percent, to $6.28 in afternoon trading.