Southwest Airlines' new mechanics contract gives immediate 20% pay hike

Southwest Airlines and the union for its mechanics reached an agreement in principle for a new contract Saturday, amid an exchange of lawsuits and more than 6 years after beginning negotiations. The proposed 5-year accord would give mechanics US$160m in retroactive pay, an immediate 20% raise effective April 1, and 3% annual increases each August, according the Aircraft Mechanics Fraternal Association and Southwest. The terms are an improvement from a proposal union members rejected in September, but since increased in part because of the added time they had worked without a new contract. Southwest secured work rule changes that will allow the carrier to become more efficient. The two sides must put the agreement into contract language before it is sent to members for a vote. <br/>