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Southwest Airlines Announces Tentative Deal Ratification

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Southwest Airlines Co. (LUV - Free Report) declared that its Appearance Technicians have ratified a four-year tentative deal with it. Aircraft Mechanics Fraternal Association (“AMFA”) represents over 200 technicians of the company. Notably, 88% percent of the total votes were in favor of the deal that take effect immediately.

Southwest Airlines’ Vice President of Maintenance Operations mentioned that the new contract is favorable for both the Agreement Technicians and the company. The deal not only offers increased pay and benefits to employees but also maintains the company’s long-term business plan.

Recent Agreements Update

Southwest Airlines has lately seen progress in a number of decisions on key employee agreements. Earlier this month, the company’s pilots ratified a new agreement. Per the Southwest Airlines Pilots' Association (“SWAPA”), the deal received approval from 84.26% of the voting pilots. Negotiations for this deal had started in 2012 and were guided by the National Mediation Board (“NMB”)since 2014. The ratified agreement will become amenable in Nov 2020.

Southwest Airlines saw another tentative agreement being ratified in October. Represented by Transport Workers Union (“TWU”) Local 556, the company’s flight attendants voted in favor of the tentative deal outlined in Sep 2016. Per the Union, 53.86% of the voters were in favor of the deal.

Employee contracts are an integral part for smooth functioning of the airline especially since it faces intense competition from peers such as JetBlue Airways Co. (JBLU - Free Report) , American Airlines Group Inc. (AAL - Free Report) and Delta Air Lines Inc. (DAL - Free Report) .

Zacks Rank

Southwest Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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