More than 9,000 IAM District 142 members at Southwest Airlines will soon have more peace of mind for a secure retirement.
A new letter of agreement between the IAM and the carrier provides a 4% non-elective contribution to the 401(k) accounts of all IAM-represented Southwest Airlines employees, regardless of how much, if any, the employee contributes. Employees will continue to get the full 9.3% as long as the employee contributes at least 5.3%.
“The IAM is a leader throughout the labor movement in focusing on the retirement security of our membership,” said IAM Air Transport Territory General Vice President Richie Johnsen. “Now, thanks to our forward-thinking and listening to the membership, we are delivering once again for our dedicated membership at Southwest Airlines.”
The agreement, effective Jan. 1, 2024, also allows current employees to remain in the health insurance plan of their choosing, while instituting employee cost caps.
“Our members demanded the strongest contract in the history of Southwest Airlines, and now we are continuing to build on that record-breaking agreement,” said IAM District 142 President and Directing General Chair John M. Coveny Jr. “We will continue to work in partnership with the carrier and our membership to institute improvements wherever necessary and feasible. Our success at Southwest Airlines is a testament to the hard work of our General Chairs.”
In December 2022, IAM members at the carrier overwhelmingly ratified a new and historic five-year collective bargaining agreement.
“As an IAM member who proudly came out of Southwest Airlines, I know first-hand the massive difference this will make in the retirements of our Sisters and Brothers,” said IAM Air Transport Territory Chief of Staff Edison Fraser. “Our members work hard to make this airline successful, and the District 142 team, along with the Air Transport Territory, will continue to fight for their fair share.”
The IAM represents Customer Service Employees, including Customer Representatives, Customer Service Agents, and Source of Support Representatives, at Southwest Airlines.
“The IAM is always looking for ways to improve the work lives of our membership,” said IAM Airline Coordinator Tom Regan. “We were happy to find a willing partner in Southwest Airlines to make significant and positive changes for our members.”