Hefty Southwest Airlines Bonuses Boost Union Wages in U.S.

Southwest Airlines Co.'s contract with its mechanics union is single-handedly responsible for a boost in union-negotiated wages with lump sums such as bonuses included, the latest biweekly update of Bloomberg Law’s database of wage settlements shows.

The mechanics got a total of $160 million in retroactive pay as a signing bonus in a contract ratified in May. Divided among the 2,700 workers, that comes out to an average one-time bonus payment of $59,260 per worker, said Bloomberg Law legal analyst Robert Combs.

Unions on average negotiated a 3.3% first-year pay increase in contracts in 2019 based on the latest ...