$6.3 Billion Game-Changer: Everything Southwest Airlines Flight Attendants Scored With New Contract

There are a lot of pieces that go into this, but the Transportation Workers Union is describing the contract internally as 19% above any other flight attendants in the industry. I’ve written before that it really helps American’s flight attendants (and United’s) who are in the process of negotiating new contracts. Southwest’s cabin crew themselves say it “sets standards for other flight attendants who are also bargaining.”

The four year contract is estimated at a total cost to Southwest of $6.3 billion. It includes,

And there are a number of quality of life and benefits improvements,

  • Southwest cannot contact flight attendants outside of contact time, or they get double time for the trip they work
  • No more ready reserve
  • Paid maternity and parental bonding leave (and extended bonding leave with health care)
  • Reserve guarantee 78TFP and daily guarantee at 6.5TFP
  • Probationary flight attendants can now use sick leave
  • “Strengthened” fatigue language
  • Commuters who get rescheduled and miss their commute home receive a hotel night and must-ride status
  • Can request a hotel with 4 hours on the ground in domicile or outstation
  • Free wifi when deadheading
  • When doctor’s note is required, the list of who qualifies to write one has been expanded, and a company doctor’s findings can now be disputed
  • Vision added to regular health care
  • Employee parking, crew meal override, paid new hire uniforms and increase to six paid holidays
  • Scheduling can only call flight attendants after they’ve had at least 7 hours of uninterrupted rest on overnights
  • Meal and rest breaks during inflight duty
  • Can wear flat-soled shoes

Some of these are quirky. Some are really valuable. Some should have been in place a long time ago. Regardless, it’s going to be pretty good to be a Southwest Airlines flight attendant.

I’ve written that it was a mistake for American Airlines flight attendants to seek ‘self-help’ (government permission to strike after a 30 day cooling off period). The airline was already offering a contract that matched the then top of the industry. Their best bet to get a better outcome in negotiations was to wait until another (stronger) union negotiated a better deal.

American Airlines flight attendants simply weren’t in a position to sustain a large scale strike. Their members don’t have the money, and the union doesn’t have the strike fund.

American Airlines CEO Robert Isom has said that flight attendants would “receive compensation and benefits that are best in the industry” by which he means matching the best in the industry. If true to his word, then, the airline will now need to offer improved terms at the next mediation sessions scheduled for April 9-11 and April 30 – May 2.

And if they don’t, National Mediation Board members may find the flight attendants’ request to be released from negotiations more compelling.

Meanwhile, Delta is going to have to figure out how much more to pay cabin crew to ensure they feel the best compensated in the industry without a union.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. I don’t usually say this often, but I am very impressed. This might surpass even what DL can offer to their flight attendants.

    Well done to WN flight attendants. Well earned.

  2. Although I may not like increasing costs, good for them as I believe they are the best in the industry with their positive attitude. Just hope they keep the 737-700 interior for as long as possible!

  3. woohoo first in to laud gary’s baiting of tim dunn!!!

    just added liquid butter to the tub of popcorn

    this one is going to be SPECTACULAR!
    /teri hatcher on seinfeld

    go tim go!

  4. Good for them. Maybe they could pitch in and help out all those starving AA flight attendants we keep hearing about.

  5. It’s funny everytime Gary writes about one airline he alway has to mention AA.
    Gary dreams with AA.
    Has a love hate relationship with AA.
    Just Hilarious!!!
    But thanks for the Comedy reading!!

  6. I just don’t know the airlines are going to afford these contracts??? Between the Pilots, Mechanics and F/A’s, it’s Billions and Billions of dollars each. They only have so much pricing power, then it comes out of profits. I know there are productivity improvements to partially offset some of this, but still….

    One recession and they will be in trouble…

  7. Congratulations on the well deserved retroactive pay! The recent ratified contract for Fleet Service ( formerly called Ramp Service ) employees at United Airlines did not include any retroactive pay. It is disgraceful that the labor union representing the employees had encouraged the employees to vote yes on this flea bitten dog of a contract when United Airlines has bragged that it has been making more money per seat per mile than ever in the past. A small signing bonus is not equal to full retroactive pay.

  8. Gary,
    you really need to control usernames on this site.
    The person that used my username in the first reply is not me.

    It is absolutely pathetic that there are people that are incapable of owning their own comments and have to mimic and mock other people.

    It isn’t surprising that there are people that can’t stand what I have to say; I have battled that for 20 years in participation on airline related chat forums

    It also isn’t surprising that the vast majority of these people are United supporters and there is no airline I have been more critical of than United.

    On this topic, it is noteworthy that United’s FAs have been willing to wait for a new contract.

    Southwest is clearly taking a significant financial risk but American and United are the two carriers that have the potential to be most financially stressed as a result. Beyond the big 4, this could be a further death blow to low cost and ultra low cost carriers who are even less financially capable of supporting higher labor costs.

    Given that AA and UA have yet to settle with FAs opens a whole can of worms in labor relations if they pay retro pay to FAs since they couldn’t be bothered to doing it for other labor groups.

    And, yes, there is a risk that Delta and other carriers might have to revisit their employee compensation not just for FAs but for all labor groups.
    Delta is by far in the best position to go back and deal w/ elevating compensation and they will do it for all non-contract employees
    Delta set the bar for employee compensation post covid; WN might raise it for FAs but DL will still have the most cohesive labor relations.

  9. It’s absolutely pathetic that you’ve been participating in airline related chat forums for 20 years. Doesn’t it get boring carrying water for Delta?

  10. the only thing that is pathetic is that are such a coward that you can’t put your name on what you write.

    It is clear that you and others would love to eliminate my voice.

    You will not succeed. The fact that you have failed in 20 years is a testament to how stupid you and your ilk are and how persistent I am.

    I am happy to see a competitive contest between DL and WN to see who can raise employee wages the most.
    WN has the balance sheet strength to make long-term investments even if they aren’t earning anywhere near what they earned in the past.
    DL has the earnings power and the ability to cost-effectively grow.

    Scott Kirby celebrated how he would take out half of the low cost and ultra low cost sector of the industry.
    The irony is that the noose is tightening around those carriers but AA and UA are not exempt.
    UA has made massive financial commitments that were built on an “everything going right” strategy that was never going to work even before the AS MAX 9 accident and now the FAA’s thumb on UA.

    I honestly had no doubt that WN would have the last laugh in DEN

  11. Losing is being unwilling to let other people speak in their own voice even when you disagree with them.

  12. Mikey b
    Check out the SEC end of year filing or WN. Check out the C-suite Job titles and compensation from 2023 – 2024. Then see if you question still applues

  13. yes I do and will.
    the “in my own voice” is relevant.

    None of which changes that there is still a need for a true side by side comparison of what this does for AA and UA FA contracts since WN calculates pay differently.

    and I am not seeing boarding pay on that list. Did that not make it?

    And let’s also not forget that WN employees have seen their effective salaries cut dramatically because of WN’s low profitability over the past several years.
    Other airlines had pay raises (contract or non-contract) at different times.
    DL also has paid substantially more profit sharing than other airlines.
    If you put all of that side by side, including for the profit sharing that AA and UA FAs have not gotten compared to DL, the difference for AA and UA FAs might justify a much higher pay raise. The question will be how long it takes to work through the process of agreement from mgmt, mediation etc. With summer looming, airlines will be very hesitant to temp a labor meltdown any time soon.

  14. Southwest does not give Paid Holidays period to Flight Attendants let alone Six. The truth is they got if voted
    in an Additional three Holidays paid at double time if they work. They get Zero in any Holiday Pay if they are scheduled.

    As for the rest of your post here there is so much incorrect information being written I don’t know where to start.

  15. Personally I think United delta and AA will match southwest how can they not! Put all this behind us and move on great job southwests union… AA lookin for a better union??

  16. “The fact that you have failed in 20 years”

    Sorry Tim, been trolling you for only 6 months. Others troll you as well, deservedly, because for 20 years you spout the same nonsense.

  17. so done,
    if only half of the stuff you say is true but we know it is not.

    We do know that United will be the most negatively impacted.

    I am happy to see Southwest tighten the screws on United since the two have the most overlap by metro airline of any two airlines.

    thank you for admitting you are a troll. When you squeeze someone hard enough, they talk. You squeal like a stuck pig

  18. Tim, you make no sense – but that is par for course. When has anyone with Tim Done, Timmy Dunn, Jr., etc. ever claimed not to be a troll? There are half a dozen all different trolls. You should be honored because you are universally despised.

    Unlike you, I check in periodically. You live on these blogs. So sad!

    Your silence about being fired from Delta and banned from Airliners is telling….

  19. I have no problem with the quality of life enhancements. But the comp and benefits are Incredible for what is essentially unskilled work, with limited performance evaluations nor risk of termination.

    Ridiculous, and will ultimately serve to put the cost of flying out of reach for a lot of people.

  20. you have posted multiple times.

    And the evidence that you are a troll is that you NEVER have anything to contribute to the topic.

    If only a half dozen people in the world despise me, I am honored. Honestly.

    You simply provide how wrapped up your tiny little mind is that a criticism I make of a company becomes personal for you.
    It is beyond hypocritical how you and your ilk say I am wrapped up in a company when the pavlovian response of a criticism about United is guaranteed to result in personal attacks on me.

    You create your own reality and then act surprised when someone doesn’t fall for it.

    Unlike your lies about me, United’s growth just came to a screeching halt not because of anything I did but because of United’s own actions – even as they touted that they would take out all kinds of competitors. Pride clearly does come before the fall.

    There is help available. I suggest you take full advantage of it.

  21. Tim Dunn, care to tell us what your old usernames were?

    I don’t see a Tim Dunn from 10 years ago

  22. and that matters how?
    nobody is or was mocking me then.

    The issue is clearly people that can’t stand any criticism of “their” airline or anything positive about Delta.
    The only person I have ever criticized by name is Scott Kirby who loves to be the in spotlight and trash talk competitors, here specifically Southwest.
    Let’s not forget that Southwest overtook United for years as the largest carrier in the LOCAL DEN market but UA has regained that position.
    Is it not the least bit a possibility that WN has quietly – unlike Scott Kirby and UA – formulated a strategy to regain that lead in DEN and do it even with the MAX 7 certification delays? Now that United is coming to the realization that the MAX 10 will also be delayed and the FAA’s deep dive of UA operations throws a distinct chill on UA’s growth plans, it seems more than believable that another Scott Kirby strategy is falling apart before our eyes.

    And, as for what I wrote in the past, AA occupied the primary focus of my criticism for years. It also isn’t a surprise that the departure of Scott Kirby and his band of merry men from AA and his implantation at UA has created some of the very same issues that AA had – excess fleet spending, financial underperformance relative to their target (which in both cases was DL) and the need to fly money-losing routes for “strategic purposes”

    It isn’t a surprise at all that the most vicious and sensitive group of people to criticism are United fans – and they take their cue directly from United and Scott Kirby who still has the testosterone induced rage of a 16 year old.

    And Southwest has long been a very well run company. They are paying dearly for their loyalty to Boeing. But they also are finally coming to grips with the reality that they have to figure out how to return to their position of financial leadership without excessive dependence on Boeing.

    I’m betting big on Southwest and hope very much to see WN employees re-energized regardless of what is actually in this proposed contract.

    looking forward to another fun day of battling the UA fan club and their leader who is fearful of his own shadow.

  23. Generous flight attendant contracts obviously open up opportunities for new entrants who can attract plenty of flight attendants at much lower wages. I also wonder if the FAA may eventually reduce the antiquated mandate of 1 flight attendant for 50 passengers. Flight attendants don’t generally provide a lot of service on airplanes these days, and I think exactly zero lives have been saved in the past decade with this mandate. One in 75 would seem more than adequate.

  24. chopsticks,
    the criteria should be as much about how many FAs are needed to monitor doors and guide passenger activity in an emergency.
    In reality, the distribution is typically 1 FA at the front of a narrowbody and 2 in the rear (if 3 are needed). 1 FA is still manning a set of doors (one on each side).
    Some aircraft like the A321 have doors mid-cabin and a FA sits there. Not sure if that it is required for an FA to be seated adjacent to any doors but many airlines prefer window exits than doors.

    There is a point when you do have to ask if 1:50 is really necessary esp. depending on door configuration.

    the point is the same, though. Increasing costs for labor leads to ways to reduce the number of people; that is true across all industries.

  25. Chopsticks…tell me you fly once a year, if that, without telling me you fly only once a year.

  26. For anyone saying that FAs pay increase will ultimately lead to higher ticket fares clearly don’t understand how airlines work.

    Pricing is set by market conditions. Mainly by competition on a route by route basis. Management would have never offered these conditions if for a second they imagined they would lose passengers because they needed to raise ticket fares.

    All jobs are compensated LESS than the revenue they bring into the company. That’s the only way a company remains profitable. If an FA makes $90 an hour it’s because they essentially are bringing SW more than that hourly. It’s simple labor market dynamics..

  27. As of last negation for AA FAs Isom IS NOT offering any retro pay. So I’m not sure how he thinks he’s offering the best or what he is waiting for. AA management DOES NOT consider Southwest a contract competitor because they are not a “major airline” so it doesn’t affect us at all.

  28. Gary, when you said APFA should have settled instead of asking for release …you undercut every assertion you just made. APFA holding out and refusing to settle is the precise reason AA flight attendants will achieve SW or better now…
    Do you not get how negotiations work? Or does your intense dislike of the current APFA completely cloud common sense and the most basic facts about how union negotiations proceed. BTW—APFA after 8 yrs of theft and horrendous financial management is profitable and is providing more transparency and negotiation updates than ever before! You absolutely have no clue about FA negotiations at AA.

  29. Hey Chopsticks—get a clue. New entrants are failing weekly. FAs are not cheap anymore —retention of new hires at all airlines is at a time low. Constantly hiring new FAs because of high turnover is very expensive for a new start up. Ask Breeze!

  30. I pay for my two tiny dogs (3.5 lb amd 4.5 lb) to get into a kennel that fits under the seat. Forfeiting one carry on or personal item. I pay to forfeit space others get as part of their ticket price. Please explain to me how this is appropriate. There are methods to acquiring ADA service animals, and that should be the industry standard. 9/10 are fake service animals, the animals behavior demonstrates they are not even well trained, let alone a service animal.

  31. Tim Dunn has admitted in the past to being a DAL and LUV stockholder so I’m not surprised by his shilling here for SWA

  32. Curious what the Southwest Mechanics will be getting (since Alaska mechanics just approved their new contract) problem is Southwest sends most of its work outside of the Airline and lots outside the country.
    Small 3% raises each year over the next 4-5 years doesn’t cut it under this administration maybe 4 years ago when inflation was 1.5% but not now.
    Also recently United Pilots got an over 40% raise

  33. AA flight attendants have been waiting on a new contract since 2019. Retro pay isn’t even being offered. We got 1.1 percent profit sharing. I’m a 37 year flight attendant and my check was $434. What a slap in the face. Other airlines got 10 percent profit sharing. Can you see why we’re disappointed? I read one guy say well flight attendants don’t have any job skills. I disagree. I highly doubt this guy has done CPR , put out a fire on an airplane or evacuated an airplane.

  34. Let’s say an airline only makes $1,000 profit a flight after all costs. With 4,000 flights a day x 365 days a year that’s still over a 1.4 billion dollars in profit a year. Not including credit card earnings, freight, government freebies, loyalty programs, fees, etc for the money they make on the side.

  35. Impressive, but is there boarding pay in this new SW contract? Doesn’t look like it’s on the list…

  36. Congratulations on your pay raises. It’s hoped that you also received compensation for boarding and deplaning. Furthermore, Flight Attendants ought to receive at least a minimum hourly wage for the time spent away from their base and for check-in prior to their flights, in addition to their flight hours. Currently, Flight Attendants are only compensated from the moment the aircraft door closes to when it opens at the destination, with a small hourly per diem for expenses.

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