PT 2 SWAPA History
Contract History Text
Early labor relations after SWAPA was certified can be characterized as good. Southwest was still fighting for it’s existence, the bargaining unit was still relatively small and everything flew out of Dallas. Survival and expansion were key issues and the seniority list grew from it’s 112 at Association recognition to 224 by the end of 1981. Contracts Number 1 and 2 were negotiated. Pay and productivity were the key issues at that time. Contract #1 attended to basic issues such as Seniority, defining the term “Trip”, and getting pay for Reserve time. Contract #2 attacked the longevity issue, which would be a lengthy fight over several contracts, started to eliminate “Shortbacks” (PM turns to a 1 leg AM the next day) and raised productivity (i.e. eliminate wasted or nonproductive time).
As the ‘70’s closed out and Southwest had essentially won it’s survival battle, the 1980’s heralded a new front – a decelerating industry and the resultant push to control any and all costs. The ‘80’s brought the B-Scale; a system of paying new hire pilots less than their counterparts in the same seat. These would become the concessionary years, and relations relative to contracts and wage packages with the Company would change significantly. Contracts remained rather short and tempers were shorter. Contract #3 was negotiated as the pilots at American were fighting their B-Scale battle. Longevity pay was frozen, but there were minimal increases in trip pay.
Contract #4 can be called “Fighting the B-Scale”. By the time negotiation for this contract came around, the B-Scale issue was on the front burner of all the nation’s airlines. The Company was insistent upon a B-Scale and the pilots were just as adamant against it. Negotiations were drawn out as the Association had to regroup once and continue the fight. Finally, the issue was “kicked down the road” with the pilots taking a pay freeze in lieu of the B-Scale. The thought was that hopefully the wage issue would resolve itself over time and not be on the table later on. While the contract was only two years in length, the Association continued to try and improve its lot by turning inward on the contract and away from pay. The Trip formula was modified, first year First Officer pay was improved, a mach adjustment was inserted and Moving Expenses were added.
The “End of the Road” came with Contact #5 and the B-Scale. The airline industry was still in a crush and several other major carrier unions had accepted a B-Scale. It was obvious that this would be the major issue at the table. Other issues like retirement, rigs, and coping with the new operational problems that an expanding airline pose would have to wait. Negotiations were quite protracted and at one point the Association filed for mediation. In the end the B-Scale was implemented, but not without a fight. The Company became acutely aware that for the pilots it was a major issue of contention. Again, as the B-Scale occupied center stage, the Association attacked peripheral issues and was successful in adding JA rules where none had existed, integrated longevity into the trip pay system, modified the formula for the non-standard trip, and added a pilot-only 401k plan. The pilots would keep the B-Scale issue as a major point of contention for the next four years.
Contract #6 was a significant and transitional contract all in one. After four years of the B-Scale, pilots repeated input to the Company, and the group now growing to 795 by the end of 1988, the leverage presented itself to attack and get rid of the two-tiered pay system. Further, the issues of retirement and coping with the growing operational problems of the airline were now on center stage. HOU and PHX were now domiciles, stage length had become longer, holding time in the mid-west was hurting the trip system, duty days had become longer and the FAA had waded in from outside and proposed drug testing.
Further, the issue of an adequate retirement system had to be addressed. In sessions that at times were contentious, a contract that involved compromise on both sides was reached. The significance was in the B-Scale fight and the transition was coping with the airline’s continued growth. On the retirement issue, several programs were proposed and discussed to include defined benefit, a rabbi trust, and straight defined contribution. In the end, the B-Scale was eliminated while operational issues such as rigs, overschedule, overfly, line guarantees, and pay increases were secured. Further, a defined contribution program with company matching was reached. The contract was in existence for five years, which was the longest to date.
As Southwest moved from a “national” to a “major” carrier, so moved the Association into larger issues in Contract #7. The group had grown to 1481 pilots and four domiciles by the end of 1993. After nine month of negotiation the Company asked the pilots to “share” in some of the future growth risk and accept stock options that amounted to 10% of the company for a pay freeze in the first half of a ten year contract. Provisions were negotiated to include all future new hire pilots and pay raises were included in the last 5 years. Importantly, provisions for continuous medical and health coverage were added, and expanded capabilities with regards to pilot’s schedules were added. The contract was approved by a margin of 67% to 33% with 95% of the pilots voting.
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Hope this info provides some useful insights and helps. SWA also experienced a 5 year maturation point in its dealing with management. It is somewhat inevitable...like children leaving the nest....its called a business cycle.
Good look JB pilots. I wish you continued success and your success will depend greatly upon how well your pilot leadership and management leadership overcomes this blip in your so far stellar rise to be a major carrier. I wish both sides good luck in finding a resolution to this issue. Your critics (who are many of the same critics of SWA) are to be ignored in my opinion....continue to focus internally versus externally for solutions (i.e. non-ALPA...that'll get the spears my way for sure...you JB folks should thank me for that http://forums.flightinfo.com/images/icons/icon27.gif !) ...good luck.
p.s. lowecur
nobody I hear on the SWAPA website or anywhere is discouraging/encouraging any discussions about this issue...SWA won't be taking 190/195's anytime soon if ever in my opinion...we obviously differ on it, OK, fine but if they do it won't be because of these "proposed" pay scales....if they elect to do in the future I'll buy you an adult beverage but I don't think I'll have to pay up in my lifetime.
