Southwest Finally Reaches Agreement with Mechanics "In Principle"
In a sign that things might just be getting better between Southwest Airlines and its mechanics, and after the airline recently declared an operational emergency in response to a spike in out-of-service aircraft, the two sides released a joint statement Saturday saying they have reached an agreement in principle for a new contract.
"After a week of mediation, including many long nights and early mornings, the Aircraft Mechanics Fraternal Association (AMFA) and Southwest Airlines have reached an Agreement in Principle (AIP) on Saturday, March 16, 2019, toward a new collective bargaining agreement. We are very pleased with the efforts of both Teams to find common ground on a new contract that is good for our Aircraft Maintenance Technicians and for Southwest Airlines," the memorandum read.
Under the terms of the new five-year contract, the mechanics would receive $160 million in retroactive pay, an immediate pay increase of 20% that would take effect April 1, and a 3% annual pay increase each August. The mechanics also agreed to changes that would allow the airline to gain efficiencies and help reduce overall costs.
"Our Mechanics certainly deserve a new contract, and we believe this industry-leading Agreement in Principle addresses our Employees' interests," said Southwest's Vice President Labor Relations Russell McCrady. "The parties were able to agree to a work rule change that allowed the Company to add compensation to the previous Tentative Agreement. I want to thank both negotiating teams for finding a solution that takes care of our People and protects the long-term success of our Company. I would also like to thank the National Mediation Board (NMB) for their expertise in helping us reach this agreement."
Even with the latest steps, it will still take some time before the mechanics and the airline can put pen to paper to sign the new contract. AMFA National Director Bret Oestreich told TPG via email that both sides should have a "full tentative agreement this week" once the language of the contract is finalized. Once that happens, ballots will be sent to all AMFA members for their vote. According to the union, it will take about 60 days for the voting process to be completed.
"After more than six years of negotiations, we finally have a deal we can recommend for the best interest of our 2,400 AMFA-SWA AMTs," read a statement from Oestreich. "I commend both sides for their hard work and tireless negotiating this past week to achieve this AIP. We also appreciate the assistance of the National Mediation Board and Mediators in guiding us to this point in the process. The Negotiating Committees are continuing to work together to finalize Tentative Agreement language, which will then be sent to the National Executive Council (NEC) for a final review, and then to the membership for their consideration and ratification vote. Further details regarding the ratification vote will be released when the TA language is completed."
Mechanics at Southwest have been working for the past six years without a new contract in place. And recently, labor issues have become very public. The airline blamed the mechanics for pulling planes out of service for minor, non-flight safety-related issues, going so far as to file a lawsuit against the mechanics union. The mechanics said they felt pressured to keep planes in the air and overlook certain issues to maintain flight schedules.
The very public dispute between management and labor eventually drew the attention of the FAA. In an unusual move, the head safety regulator at the FAA issued a letter to the airline. This comes as Southwest prepares for its much-anticipated launch of flights to Hawaii. When asked if the recent developments had anything to do with the impending launch, both the AMFA and Southwest said no. "The agreement is a result of our ongoing negotiations…it's not related to the timing of Hawaii," a spokesperson for the airline said in a statement to TPG.
If finalized, the next time the new agreement would be amendable is August 16, 2024.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.