SWA - No classes yet

[pegasus]

Thanks Specnut. I've been here since Nov and it is getting very old.

Appreciate you taking the time to post.

 

[JayhawkDude]

Another Piece of the Puzzle...

Southwest, Union Reach Early Deal

Friday August 30, 2:37 PM EDT

DALLAS, Aug 30, 2002 (AP Online via COMTEX) -- Southwest Airlines said Friday it reached tentative agreement with its union mechanics on a new contract that would last until August 2005.

The agreement includes pay raises retroactive to August 2001 and stock options for the 1,300 mechanics, who are represented by the Teamsters union.

Further details were not disclosed. The deal, which would run through Aug. 16, 2005, must still be ratified by the union membership.

Federal mediators were called in this summer to help the two sides. The mechanics' last contract ran through last August but remained in force, which is standard in the airline industry as a safeguard against strikes.

The tentative deal was recommended by a majority of the union's negotiating board. It comes against the backdrop of workers at other carriers being asked to make wage concessions because of the industry's financial crisis caused by the slow economy and traveler fears after Sept. 11.

But while its competitors have been losing more than $10 billion over the past 20 months, Southwest has remained profitable.

In recent weeks, Southwest pilots ratified a contract that will raise their pay 36 percent over the next four years, and the airline also settled with a smaller group of flight instructors.

Southwest, the most heavily unionized U.S. airline at about 85 percent of its work force, is still negotiating with flight attendants and customer service and reservations agents.

Some analysts had warned that Southwest, which has the lowest cost structure among major U.S. carriers, faced the threat of rising costs because of the multiple ongoing negotiations.

Ed Stewart, a spokesman for Southwest, said he could not comment on the agreement's impact on the airline's cost structure.

"We know that we're a low-cost operator ... I'm sure that's why analysts were taking a close look at us, but we try to do the right thing for our workers," Stewart said. "We look forward to the membership voting on this."

In trading Friday afternoon, Southwest shares fell 4 cents to $14.47.

By DAVID KOENIG AP Business Writer

Copyright 2002 Associated Press, All rights reserved

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Let's hope this is another piece of the cost puzzle management is looking at before they decide the time is right to grow. Hopefully, this is good news to those of us swimming laps!