If left unresolved, a stalemate in negotiations between Southwest pilots and the airline could lead to a rare strike. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Southwest Airlines is bracing for a possible strike by its pilots after years of contract negotiations failed to produce an agreement. The pilots’ union, the Southwest Airlines Pilots Association, has asked to be released from mediation, over Southwest’s objections, and is now awaiting an official ruling on its request from the National Mediation Board. Union members voted almost unanimously in May to authorize a possible strike, with roughly 98% of pilots participating.
The main point of contention is the airline’s pilot scheduling system, which has been blamed for causing pilot fatigue and flight delays. For example, Southwest’s antiquated tech was implicated in the carrier’s disastrous meltdown in December of last year, when 16,000 flights were canceled over a period of 11 days.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But a strike is still several steps away. Even if the mediation board grants the union’s request, it may first offer both sides the opportunity to arbitrate the dispute. If either side declines the arbitration, both sides will enter a 30-day “cooling-off” period, after which the pilots can legally strike.
Pilot strikes are historically rare. The last one occurred in 2010 at Spirit Airlines. Agencies like the National Mediation Board take pains to prevent work stoppages from disrupting the flow of interstate commerce via the airline and railway industries, with Congress also sometimes stepping in.
Southwest is still hoping for a breakthrough in the negotiations, similar to the deal it struck last month with the union representing its mechanics.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
-
Alaska Airlines to Buy Hawaiian: Get Bonus Miles NowHow to use the Alaska Airlines credit card and frequent flyer program to save on trips to Hawaii, Alaska and beyond.
-
11 Reasons to Consider a 1031 Exchange
Deferring capital gains taxes might be at the top of the list, but growing your portfolio and your wealth and helping with estate planning are also compelling reasons.
-
As Mortgage Rates Rise, Renting Is Now Cheaper Than Buying for Many: The Kiplinger Letter
The Kiplinger Letter A jump in mortgage rates has caused housing affordability to slump and priced many first-time home buyers out of the market.
-
Buy Now, Pay Later (BNPL) Sector Faces Financial and Regulatory Challenges: The Kiplinger Letter
The Kiplinger Letter BNPL companies are facing the challenges of high costs, tightening financial conditions and regulatory scrutiny.
-
FDA Approves Zepbound, the Latest Weight-Loss Drug: The Kiplinger Letter
The Kiplinger Letter Eli Lily’s Zepbound will undercut its rivals’ pricing but still costs over $1,000 a month.
-
More Signs of Belt-Tightening and a Slowing Economy: The Kiplinger Letter
The Kiplinger Letter Although fewer banks are tightening lending standards, more businesses and households are feeling the squeeze.
-
The Recent Uptick In Global Trade Won’t Last: The Kiplinger Letter
The Kiplinger Letter Global trade continues to fall as economic growth around the world cools.
-
Consumers Have $1 Trillion More Savings Post-Pandemic: The Kiplinger Letter
The Kiplinger Letter GDP data show Americans have more savings than they did pre-pandemic.
-
Once-Booming Gun Sales Have Slumped: The Kiplinger Letter
The Kiplinger Letter Since 2022, FBI background checks, a close proxy for gun purchases, have slumped.
-
The Era of Super-Low Interest Rates Could Be Over: The Kiplinger Letter
The Kiplinger Letter We’re likely never going back to the historically low rates that prevailed in late 2019 and early 2020.
