Southwest, pilots to begin talks

03:46 PM CDT on Monday, September 18, 2006

Bloomberg News

Southwest Airlines Co., already the most profitable U.S. carrier, will ask its pilots to help boost productivity as the two sides start contract talks Tuesday for the first time since 1994.

Southwest wants greater pilot productivity as well as new work rules that might let it generate more revenue. The 5,000 pilots, the industry's best paid, want raises and job protection in case Southwest seeks to broaden its ties with other carriers.

"Southwest is going to have a difficult time," said Roger King, an analyst for New York-based debt-research company CreditSights Inc. "I don't know how much more efficiencies they can wring out. The pilots already are the highest paid, which puts them in a bad bargaining position."

The talks follow a 67 percent jump in fuel expense in the first half of 2006, prompting Dallas-based Southwest to search for other spending cuts. Larger rivals have slashed jobs, wages and benefits amid billions of dollars in losses, narrowing Southwest's cost advantage.

"We would genuinely like to continue to brag that we have the highest-paid group in the industry," Joe Harris, Southwest's vice president of labor and employee relations, said in an interview. "But we are going to be jointly exploring how they can help us to cut costs, help us to examine new ways of perhaps gaining additional revenue."

The talks are the first since 1994, when the Southwest Airlines Pilots Association accepted a 10-year contract. Pilots approved a four-year extension in 2002, and in June rejected a request from Southwest to delay talks until next year.

Union spokesmen didn't return calls seeking comment. In past interviews, union officers said pilots want to "adjust" compensation and secure job protection as Southwest expands its marketing alliance with ATA Airlines Inc. or adds others.

"Inevitably, it will be a battle of pay against productivity," said Robert Mann, head of Port Washington, New York-based R.W. Mann & Co., a consulting firm that works with both airlines and unions.

 

Highest paid for how long?

How can the pilots help cut costs more?

Don't SWA pilots already fly more than anyone else out there in the majors?

 

I thought ABX was the highest paid?
12 year Capt.?

 

Cargo doesn't count!

 

Ya, except for maybe that making money thingie.

 

As usual, you will see rhetoric on both sides. But the productivity thing is a strange request.

For the company, productivity = more days of work. That has been stated before. The union knows it and says it can't and shouldn't be done. To be honest, timing out every month ought to be good enough for the company. The company has been good at making efficient schedules that allow it for minimal days at work. They even pay well for highly efficient schedules. They understand there is no way to get more efficient or fly more per month. I think the company just wants to head off requests for higher pay. I know the pilot group does not want to work more days per month.

The pilots are already flying over 7 hours a day and flying almost 30 hours on four day trips. Some end up flying 24 hours in 3 days. The only way to "increase" productivity is to mess with vacation, DECREASE efficiency of flying (flying hours per day), or reduce rig/de-rig open time/reserve.

The pilots want cost of living raises (some want more), benefits until 65 and other enhancements. Scope is big too. Most of the smart pilots, even those hard over about increasing pay dramatically a few years ago, say little to no raise is the best plan.

I wonder what will really happen.

 

Perhaps since you paid for your type, you could chip in on your recurrent training too! That would certainly help the margins!

Okay, okay...just stirrin' the pot. SWA is making money, gas is coming down. You guys don't need to run and tremble at asking for some extra coin for your efforts in making the company so successful. Yes...you've got great management...but it ain't management I see taking by like a bat out of hell whenever I am passing through MCO or OAK. You guys do a great job.

 

deleted by member

 

It would seem that the price of fuel looms large for SWA in the near future. How long is the hedge good for?

 

I think You SWA guys bust your keester out there.

If ANYTHING you should be given a pay RAISE AND
more days off. You fellas set the bar for the best run
airline now.
I just don't see how one could improve on that!

How about this:

Charge more for tickets?
That way EVERYONE makes more money.

I say get every scrap off the table.