Southwest Pilots Vote to Keep Contract

Southwest Airlines Co. pilots voted Friday to maintain a 10-year labor contract rather than reopen negotiations, after the company sweetened the original agreement. The airline firmed up certain pay raises, moved up the date for increasing its retirement contribution and negotiated two new non-qualified retirement plans, a union spokesman said.

An airline spokeswoman said the company had not estimated the cost of the added sweeteners.

Southwest negotiated its pilot contract in 1994. The agreement froze pilot pay for the first five years in exchange for giving them stock options totaling about 10% of the company’s outstanding stock.

The pact contained a provision allowing pilots to renegotiate starting Sept. 1, 1999, but pilots voted a year before the deadline to keep the contract because of the company’s willingness to sweeten terms.