Southwest Airlines 2025: New Tentative Labor Deal with Transport Workers Union and Ongoing Pilot Strike Threat

Southwest Airlines Co. (LUV) has successfully negotiated a tentative agreement with the Transport Workers Union Local 555, representing more than 17,000 ramp, operations, provisioning, and cargo employees. This development marks a significant step in resolving labor disputes, though challenges remain as the pilot union continues to push for a strike.

The agreement includes competitive wages at $36.72 per hour, capped insurance premiums, improved retirement plans, enhanced job protections, and better staffing levels. Additional benefits such as expanded parental leave and premium pay days were also secured. Union members will vote soon to ratify the contract.

Key Highlights:

• Agreement covers over 17,000 Southwest ramp, operations, provisioning, and cargo workers.
• Secures industry-leading wages and enhanced health and retirement benefits.
• Pilot union negotiations remain unsettled, with strike authorization already granted.

This tentative deal follows a recent agreement with the Aircraft Mechanics Fraternal Association (AMFA), ratified in July, which covers nearly 2,870 mechanics and related staff.

Despite these gains, Southwest Airlines faces ongoing uncertainty as the Southwest Airlines Pilots Association seeks to end federal mediation and has authorized a strike, threatening to disrupt operations at the nation’s third-largest domestic carrier.

CEO Bob Jordan confronts the fallout from the 2022 holiday travel chaos, which led to approximately 17,000 flight cancellations and an estimated $825 million loss for the Dallas-based airline.

Southwest reported record second-quarter revenues of $7 billion on July 27, but rising inflation and lower breakage revenue have caused investor concerns, leading to a dip in LUV stock prices.

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