Southwest Airlines Co. and its pilots union agreed on the basics of a contract that would provide an immediate 15 percent pay raise followed by four annual increases of 3 percent, plus a ratification bonus.
Final wording on the contract terms is expected to be negotiated by the end of this week, the Southwest Airlines Pilots Association said in a message to its 8,300 members Monday. The two sides had been in negotiations for more than four years, and the union led other labor groups in a no- confidence vote against the carrier’s chief executive officer earlier this month.
As part of the agreement in principle with the pilots union, Southwest won the right to form marketing agreements with other carriers on its nascent international routes. That’s a change the carrier had sought to attract more passengers at little added cost.