SWA Mechanics TA
01-31-2009, 05:39 AM
#1
Gets Weekends Off
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Joined APC: Apr 2006
Position: 737 CA
Posts: 2,750
SWA Mechanics TA
Southwest mechanics approve contract with raises
Friday January 30, 4:50 pm ET
By David Koenig, AP Airlines Writer
Southwest Airlines mechanics approve new contract with raises, possible signing bonuses
DALLAS (AP) -- Mechanics at Southwest Airlines Co. approved a new four-year contract that calls for annual raises and bonuses and includes an agreement on the company's ability to send maintenance work abroad.
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The Aircraft Mechanics Fraternal Association, which represents 2,500 of Southwest's 35,000 employees, said the contract includes raises of 3 percent each in 2009, 2010 and 2011 and 1 percent in 2012.
Workers will also get a 3 percent ratification bonus, and those at the top pay scale -- about three-fourths of all mechanics -- can earn another 1 percent bonus each year if they work enough hours, union national director Louie Key said Friday.
The union said the contract was approved by 60.6 percent to 38.9 percent with some abstentions. It will be signed next Tuesday in Dallas.
Dallas-based Southwest is fighting rising costs and slumping demand for air travel. It has lost money the last two quarters, breaking a string of profitable quarters that reached back to early 1991. For the first time in its 38-year history, it plans to cut capacity this year.
Chairman and Chief Executive Gary Kelly said in a statement Friday that despite challenging times, negotiators produced a "cost-neutral contract" that gives the airline more scheduling flexibility and productivity improvements. He didn't offer details.
The union said the contract includes a side agreement that limits Southwest to operating four maintenance lines outside the United States. One line can service one plane at a time, and maintenance facilities often have several lines.
Key said Southwest has 21 lines overall, with its own employees working three of them and the rest outsourced to vendors in the United States.
Last year, the company planned to outsource some maintenance work to a company in El Salvador. The plan was shelved after Southwest ran afoul of federal safety regulators for failing to perform required inspections for cracks in the bodies of its planes and then flying the planes anyway.
The vote ratified a tentative deal reached last month between the low-cost carrier and replaces a contract that ran through last August. By federal law, labor contracts in the airline industry don't expire but can be changed at the end of their intended term.
Southwest shares fell 22 cents, or 3 percent, to close at $7.03 after sinking to a 52-week low of $6.97 earlier Friday.
Friday January 30, 4:50 pm ET
By David Koenig, AP Airlines Writer
Southwest Airlines mechanics approve new contract with raises, possible signing bonuses
DALLAS (AP) -- Mechanics at Southwest Airlines Co. approved a new four-year contract that calls for annual raises and bonuses and includes an agreement on the company's ability to send maintenance work abroad.
ADVERTISEMENT
The Aircraft Mechanics Fraternal Association, which represents 2,500 of Southwest's 35,000 employees, said the contract includes raises of 3 percent each in 2009, 2010 and 2011 and 1 percent in 2012.
Workers will also get a 3 percent ratification bonus, and those at the top pay scale -- about three-fourths of all mechanics -- can earn another 1 percent bonus each year if they work enough hours, union national director Louie Key said Friday.
The union said the contract was approved by 60.6 percent to 38.9 percent with some abstentions. It will be signed next Tuesday in Dallas.
Dallas-based Southwest is fighting rising costs and slumping demand for air travel. It has lost money the last two quarters, breaking a string of profitable quarters that reached back to early 1991. For the first time in its 38-year history, it plans to cut capacity this year.
Chairman and Chief Executive Gary Kelly said in a statement Friday that despite challenging times, negotiators produced a "cost-neutral contract" that gives the airline more scheduling flexibility and productivity improvements. He didn't offer details.
The union said the contract includes a side agreement that limits Southwest to operating four maintenance lines outside the United States. One line can service one plane at a time, and maintenance facilities often have several lines.
Key said Southwest has 21 lines overall, with its own employees working three of them and the rest outsourced to vendors in the United States.
Last year, the company planned to outsource some maintenance work to a company in El Salvador. The plan was shelved after Southwest ran afoul of federal safety regulators for failing to perform required inspections for cracks in the bodies of its planes and then flying the planes anyway.
The vote ratified a tentative deal reached last month between the low-cost carrier and replaces a contract that ran through last August. By federal law, labor contracts in the airline industry don't expire but can be changed at the end of their intended term.
Southwest shares fell 22 cents, or 3 percent, to close at $7.03 after sinking to a 52-week low of $6.97 earlier Friday.
01-31-2009, 05:52 AM
#2
Gets Weekends Off
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Joined APC: Apr 2006
Position: 737 CA
Posts: 2,750
I knew most of their heavy maintenance was outsourced...but wow...85%...18 out of 21 lines. I guess since it has always been outsourced, no need for the mechanics to get upset. And now 4 foreign lines as well. Brilliant really. It took UAL decades and a bankruptcy to allow 50% of heavy maintenance outsourcing. 2500 mechanics for over 500 airplanes is incredibly low, and profitable! As a reference, 8 years ago UAL had 600 jets and 10,000 mechanics.
Last edited by jsled; 01-31-2009 at 06:01 AM.
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