Southwest reaches new contract with customer service workers

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May 6--Southwest Airlines inked a tentative contract with its customer service employees Tuesday that includes wage increases and changes to work rules.

Airline and union officials said the proposed four-year contract would extend through Oct. 31, 2012. The airline has been negotiating with the International Association of Machinists and Aerospace Workers since August.

The union represents about 5,300 customer support and services employees and airport customer service employees.

"This industry-leading agreement provides substantial wage increases, fully retroactive back pay to Nov. 1, 2008, as well as work rule and benefit improvements," Tom Higginbotham, president of IAM District 142, said in a statement. He added, however, that he was disappointed that the deal did not include a traditional pension.

"This was the most contentious issue in this round of bargaining," he said, adding that the union "explored and exhausted every avenue."

Southwest officials said that they were pleased with the deal and that it would make employees more efficient at its call centers and airports. Specific details of the agreement weren't disclosed Tuesday.

The contract must be approved by union members. Shares of Southwest (ticker: LUV) rose 7 cents Tuesday to close at $7.45 per share.

TREBOR BANSTETTER, 817-390-7064