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Labor Relations at Southwest Airlines

Aug 29 2008

I became an Employee of SWA in December 2005.  However, as an attorney in private practice, I represented SWA in labor and employment matters for over 34 years before becoming an Employee.  Often, when people would learn that I represented Southwest Airlines, they would ask, “How does Southwest manage to remain non-Union?”  I would chuckle and explain that, in fact, Southwest is the most heavily unionized airline in the industry.  (We currently have ten collective bargaining agreements covering over 85% of our approximate 34,000 Employees.) 

But why was I so often asked this question?  I believe it is because there has been so little labor strife at Southwest.  But what is the explanation for such a remarkable labor relations history?  I believe it is attributable to two factors: (1) commitment to positive labor relations at the highest level of Leadership; and (2) our positive Employee Culture. 

Southwest Airlines began flying in June 1971, and I began representing Southwest in May 1972.  During those early years, I was privy to discussions at Southwest concerning what approach Southwest would take with regard to Union representation of its Employees.  Lamar Muse, the first operating CEO and President of Southwest, was of the opinion that we should not expend time and resources in an attempt to remain non-Union.  Lamar’s reason for doing so was both pragmatic and financial.  We were small and broke.  In Lamar’s opinion, if we were to be successful at remaining non-Union, we would have to lead the industry in wages and benefits, something we could not even begin to do.  Lamar also expressed the opinion, based on years of dealing with Unions at other airlines, that if Unions were voted in by our Employees, we could build and manage successful relations with them.  Herb Kelleher, recently retired Chairman of the Board at Southwest, believed that it was important for our Employees to have a voice.  He also strongly believed that we should not be adversaries, but rather partners, with any labor organization representing our Employees.  Although Lamar is now deceased and Herb is retired, there is still today at the highest levels of Leadership at Southwest a commitment to sustain and nurture the sound relationship we have with our labor organizations.

There is yet another factor that contributes to positive labor relations at Southwest: our Culture–how we view and treat our Employees.  At Southwest, our Employees come first; our Customers come second; and our stockholders come third.  The rationale is pretty simple.  If we treat our Employees right, they’re going to treat our Customers right.  If our Customers are treated right, they will come back and our stockholders will benefit.  Moreover, if we are committed to the proposition that we are going to treat our Employees right, then it follows a fortiori that we should treat the labor organizations that represent them no differently. 

My role at Southwest falls under the Labor & Employee Relations Department, and the mission of our Labor & Employee Relations is to promote effective and respectful relationships with all of our Employees, as well as the Unions and Associations who represent our Unionized Employees.

Of course, this sounds great in theory, but the challenge is in execution.  It requires a daily commitment to do the right thing in our dealings with our Employees and the labor organizations that represent them. 

  • To disagree without being disagreeable. 
  • To avoid character assassination and vilification when things don’t go our way. 
  • To learn to listen, not just for the sake of being courteous, but with a goal of genuinely understanding and evaluating another point of view.  
  • Learning to appreciate the value of loyal opposition. 
  • To learn that we are not always right. 
  • To be willing to compromise and appreciate the value of joint resolution of disputes. 
  • To understand that a short term “win” at any cost can be destructive to a longterm relationship.

 

I believe Southwest and the labor organizations representing our Employees share two common goals: (1) to adequately and properly provide for the safety and economic wellbeing of our Employees; and (2) to keep our Company healthy and prosperous.  In these times of everincreasing costs and volatile fuel prices, it is a difficult challenge.  But we feel more confident knowing that our labor organizations are partners with whom we can join hands in this effort.

In summary, we value the relationship we have with our Employees and the labor organizations that represent them.  We believe that this relationship has contributed to the remarkable success of Southwest Airlines.  We are, after all,  in a Customer Service business that depends for its success upon our Employees.  As Colleen Barrett,  has often said, “We are in the Customer Service business.  We just happen to fly airplanes.”

In the entrance lobby at our HDQ building in Dallas, Texas, there is an inscription etched in glass that eloquently describes how the success of Southwest Airlines is attributable to our marvelous Employees: 

The people of Southwest Airlines are the creators of what we have become–and of what we will be.  Our people transformed an idea into a legend.  That legend will continue to grow only so long as it is nourished–by our people’s indomitable spirit, boundless energy, immense good will, and burning desire to excel.  Our thanks–and our love–to the people of Southwest Airlines for creating a marvelous family and a wondrous airline.

(See a video from Herb in our video blog section.)

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Comments

So the employee comes first huh? Is that why the compnay does not want to give us any more money. There are employees that have gone several years with out any raises. The compnay does not even want to give us a wage of living increase. TWU555 Unite WE MAKE IT HAPPEN Southwest has made a profit for 30 straight years but they dont want to pay the employees what they deserve. Which is not right!!!!!!

  • Anonymous (not verified) — 08-29-2008 at 09:30 AM

Sounds like SOS. The corporate hub bubs who never venture out of there cubicles and offices are delusional as always. Let's have deck parties and hope this dream will stay alive. Reality will set in when all the front line employees stand together and make Southwest Airlines stand behind the commitment mentioned above. I challenge anyone in HQ to spend a week in the front lines and then pat themselves on the back for a job well done. If you do, then you are as selfish as your delusional "friends" who happen to be your leaders. I love Southwest Airlines but it's most valuable assets are being taken advantage of by the company and the unions. I hope that I see the day that we all prosper and make what our self worth and sacrifices attribute. OVER THE IAM!!!

  • Anonymous (not verified) — 08-29-2008 at 03:48 PM

I think all us twu members should stand strong and not take this BS southwest is throwing at us. Every offer they give us is an insult to how hard we work. I would like to see Mr. (number fudger) Gary Kelly work one year on the line with the starting pay and see how he does and how and his family survive. I wish every one that flys southwest airlines hears and sees how we work hard day in and day out, and like them to see how the company treats us. This matter should really go to the media this would resolve all of this quick, they wouldnt want to ruin their name or reputation. We should be treated fairly and I am willing to go all ten yards and stand up for what I deserve. With that said TWU 555 will stand strong we are not bluffing.

  • Anonymous (not verified) — 08-29-2008 at 05:18 PM

To the first anonymous TWU555 commenter: Your union's website states, "When the first TWU backed contract was ratified in 2001 the starting pay had reached $8.60 on the ramp. The top out had come down to 11 steps and the pay had shot up to $24.00 an hour. We now lead the industry. We have added earned award days that hadn’t existed before and our 401K plan is one of the best around including corporations outside of the airline industry." Considering that your contract is already industry-leading, and that very high fuel costs and the faltering economy are exacting a heavy toll on the industry and present a real threat to SWA's profitability streak, I'm curious to know what you think SWA can afford to appreciably improve in your next contract. Thank you!

For Drew,

I think everyone wants to see that Southwest Airlines remains the successful company it is. However, that succes has been made posible by a workforce that has always gone the extra mile and then some regardless if you were at $8.60 hr as a new hire or at $24.00 hr after toping out after your 11th year on the ramp for example. No workforce in the industry can turn a aircraft in the time we do on the ramp today. The company has on numerous occasions since the last contract asked its workforce to increase its production with no monetary increases. Every request has been met by the workforce. Its not much to ask for at a minimum a cost of living increase after producing the way we have since 9/11/01. Its time for the company to step to plate and to do whats right. The employees have and always will be this company's greatest asset. If the Management team now in place wants to destroy what Herb and Colleen built so be it. Its a dangerous path and reverses what past leaders have always stated about the employees of Southwest Airlines. Treat your employees with respect and they will produce like they have always done. Its time to acknowledge and compensate this airlines greatest asset. Will the Company respond to us the way we responded to managements request in the past? Who Knows early indicators suggest otherwise.

  • scott (not verified) — 08-30-2008 at 02:23 PM

I think Southwest is full of crap. My husband works long hard shifts everyday and barely makes enough to get by. Southwest is doing nothing to make life easier for their employees. MONEY is what comes FIRST to Southwest Airlines...not their employees. These guys can't even take a sick day without worrying about getting fired because this company thinks these employees should eat, sleep, and breath Southwest Airlines. They treat them like slaves....not human beings. I hear story after story about how some guys work all day long, busting their butts and then others get away with sitting around and sleeping. Why is that? Is it because of the color of my husbands skin that he can't take a 5 minute break? The management completely stinks....they are racist as far as I'm concerned. There are guys there that almost kill fellow employees by not doing their jobs right but get away with it ...but my husband has to fight to keep his job because he took A day off, due to having the stomach flu? That's garbage. The union needs to step in and do something or the men and women of Southwest (Ramp) need to take further steps towards getting what they deserve. I'd like to see any of the big shots come down and do what these people are doing because if it weren't for Ramp Agents, Southwest would go under. They are the spine of the company. The big shots can't even lie and make people believe it. One day they profited $120 mil (talking to employees) and the next they are telling WallStreet they profited $320 million or something crazy like that. Well, which on is it? Either way....they are making MILLIONS of dollars all because of the EMPLOYEES efforts and hard work.....they can spare to give these people a raise....a LONG OVERDUE raise....one that keeps up with COST OF LIVING. Southwest Airlines has NO RESPECT for it's employees or customers. The leaders of this company are selfish, greedy, and ignorant. All they are after is how much money they can put in their own bank accounts. They don't care about anyone else and I pray to GOD that this business one day crumbles. Greed gets you nowhere. What goes around, comes around. The benefits are horrible too. They sound good to start but when my husband got hurt AT WORK...doing his job, they sent him to some chop shop doctor, who barely spoke ENGLISH, did nothing or close to nothing for his injury, tried to make him pay out of pocket for the bill AND THEN, tried to find a reason to fire him for being out on OJI. Tell me, how are those GOOD benefits? Tell me how Southwest Airlines is a GOOD employer if it's employees have to FIGHT for the little they have? Tell me how Southwest Airlines puts it's employees first? Cuz I think it's a crock. No, I KNOW it's a crock. I really hope this negotiation goes sour and that this is brought to the media so the public finds out the truth behind this "great company". They need to know how they REALLY treat their employees and hopefully they are smart enough to not fly with them anymore. The planes are cramped, the flight attendants are trashy, I rather cover myself with a peice of paper then their stupid "blanket" and their overall service to customers sucks.

The big shots of this company need to look back to before they were big shots and remember how it felt to be UNDERPAID for the job they were doing. This economy is the way that it is due to Greed and selfishness and Southwest is just contributing to it. These people NEED A RAISE!!!

  • Pissed Off Wife of Southwest Employee (not verified) — 09-01-2008 at 02:30 AM

The way I see, just from where I stand on this, is that valuing the relationship with Employees and the labor organizations that represent them is one of the most essential and basic things that a big city such as "Southwestern Airlines" should do.

The essence of a team is common commitment. Without it groups perform as individuals; with it, they become a powerful unit of collective performance. This kind of commitment requires a purpose in which team members can believe. Whether the purpose is to "transform the contributions of suppliers into the satisfaction of customers" to "make Southwestern they can be proud of again," or to "prove that all children can learn," credible team purposes have an element related winning, being first, revolutionizing, or being on the cutting edge."

http://www.iloho.com/flight-search

Alexander Agostini

  • iloho (not verified) — 09-01-2008 at 08:04 AM

I have had the privilege of being part of the SWA family for the past 14 months. I knew what the starting salary was when I was offered the position as a CSA, and the acceptance of the position meant I was willing to work for the money offered. If so many long-time SWA employees are truly unhappy with their pay, we must wonder why they stay with SWA. This is not indentured servitude. . .could they be staying for the benefits. . .such as the 401K match that is very high, the chances given to employees to move about the company and grow within the company professionally? When you wake up in the morning and grimace about the idea of having to go to work, then isn't it time to find a new job? Having worked for another carrier for almost a decade, to only be told my position was being outsourced, I cannot agree that SWA does not stand up for their employees. That's just the opinion of one CSA who likes what I do every day, and finds something good everyday in what I do. Yes, it would be nice to be paid more. That's what the union and negotiations are all about. For now, add up all the benefits and perks and ask yourself again, why are you staying a SWA employee if you are so very unhappy?

  • Anonymous (not verified) — 09-01-2008 at 03:51 PM

In response to PISSED OFF WIFE of Southwest airlines.......AMEN!! In you paragraph you spoke of how we are in fear of jobs if we call in sick well on another view of that, I am a csa and have been wanting to go inflight for the longest time. I was working on getting my points and occurences down to 3 and 3 just so i can put in, when i got really sick in the hospital and sure I came back with doctor's note but then 3 weeks later i relapsed and went back to hospital. So now i am over points and occurences and being forced to have to wait. I have a four year old son and am a single mother like alot of us and the only reason i have to go inflight is so i can make better pay to make ends meet. While Gary Kelly sits back nice with his feet up i am working 2-3 doubles in a row to afford bills and for a "family airline" that sure leaves no time for my small family of my son and I. But isn't it funny that swa will hire inflight off the street but will not allow it's internals to transfer with more than 3 points!!!!!!! Hey Gary why don't spend some time on the front line and recieve our pay for a while and let me know......can you take care of your family????

  • Anonymous (not verified) — 09-01-2008 at 04:16 PM

OMG Alex! What in the world are you babbling about? Besides, it's Southwest Airlines, not Southwestern.

  • Anonymous (not verified) — 09-01-2008 at 06:13 PM

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