The Transport Workers Union and Southwest Airlines reach a provisional agreement after five years of negotiations.

On Thursday, the company announced a tentative five-year agreement with a local unit of the Transport Workers Union representing approximately 18,000 operations, provisioning, ramp, and cargo agents.

The agreement, pending approval by TWU 555 members, provides for an initial pay increase of over 18% and a subsequent annual wage increase of 3%.

Against the backdrop of a tight U.S. labor market, unions representing pilots, flight attendants, and maintenance workers have sought higher wages, better scheduling, and other benefits in the past two years.

The wage rate of $38 per hour at the top of the wage scale, which is 6.6% above United Airlines' current industry leading rate, has been agreed upon by the TWU.

The deal enables employees to attain the highest salary after 10 years of service instead of the current 11 years.

According to TWU International Executive Vice-President Alex Garcia, the tentative agreement offers much-needed raises and quality-of-life benefits to our dedicated airport workers nationwide.

Since October 2022, Southwest has ratified contracts with nine worker groups, including the cabin crew members who approved a strike mandate in January after rejecting a tentative contract.

In the past month, Southwest Airlines pilots ratified a labor agreement that includes a roughly 50% salary increase over a five-year period.

Operating costs have increased for major airlines due to bumper pilot contracts, which have also prompted other groups to seek similar benefits.