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The union representing about 2,500 Southwest Airlines mechanics voted overwhelmingly Tuesday to ratify a new contract proposal, ending a nearly seven-year labor stalemate and ending in court twice.
The five-year contract gives mechanics $ 160 million in salary arrears to cover the period since the end of the last contract, in August 2012, immediately increases wages by 20% and includes 3% of the salary. annual increases, according to the union, the Aircraft Fransern Mechanics Association.
In a statement, the union said the proposal was better than the one it rejected in September and more than 90 percent voted in favor. The union said its major concession allowed Southwest to continue outsourcing some mechanical work to foreign contractors.
"Our goal now is to work with Southwest Airlines, as we do the important work of restoring the safety culture for which Southwest Airlines is traditionally known," the union statement said.
Southwest said in its own statement that the agreement would take effect immediately and would benefit both the company and its workers.
"Our mechanics will receive well-earned salary increases and the company will have the additional flexibilities needed to compete in the airline industry," said Russell McCrady, Vice President, Labor Relations, Southwest.
The agreement came about three months after the Southwest decision sued the union, accusing it of an illegal slowdown in work that required canceling 100 flights a day for weeks. The union said the mechanics were grounding planes for safety reasons. The Federal Aviation Administration has warned both sides that the dispute could affect the safety of the airline, which carries more passengers on domestic flights than any other airline. (Southwest also sued the mechanics in 2017, accusing them of illegally boycotting overtime.)
Henry Harteveldt, travel industry analyst, said that travelers would be happy to see the stalemate broken.
"Peace reigns in the kingdom," said Harteveldt, founder of the atmospheric research group. "This is good news for Southwest and its travelers, especially as the airline is entering the extremely busy and extremely critical summer season."
Harteveldt said investors in the South West could also have reason to applaud the agreement. American Airlines his mechanics continued Monday, which means that some travelers might consider the Southwest as a more reliable option in the cities where the two airlines compete.
"There could be a slight variation in market share and therefore income in favor of Southwest," he said.
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