International Association of Machinists and Aerospace Workers (IAM) District 142 today announced that due to the “true up” provision negotiated during the last round of collective bargaining, IAM workers at Southwest Airlines will receive an additional $119 million in wages and lump sum payments.
“I’d like to thank the IAM negotiating committee at Southwest for their foresight and ensuring that IAM members receive what they rightly deserve,” said General Vice President Sito Pantoja. “IAM members at Southwest Airlines have consistently provided the customer service that has kept the airline at the top and deserve every cent they will receive.”
“The true up provision represents the expertise of the IAM in negotiating airline industry contracts and the great working relationship the IAM has with Southwest Airlines,” said IAM District 142 President Dave Supplee. “This is a win-win. IAM members receive what they deserve and Southwest gets the best employees in the industry.”
The ‘true up’ provisions were negotiated to ensure IAM members’ wages at Southwest remained at the top at the carrier with comparable classifications because the IAM ratified contracts at the carrier first. IAM members enjoyed pay increases and lump sum payments in 2014 and 2015 before the ‘true up’ provisions were triggered.
The $119 million represents wage increases through 2018 and lump sum bonuses to be paid within 90 days. The Profitability Bonus payments (ROIC) scheduled through 2018 will all be advanced into a single ROIC payment this year. The combined-single ROIC payment will occur after the April 5, 2016 due date but within the same 90 day period.
Click here to see the adjusted pay scale effective March 1, 2016.