Southwest pilots picket over lack of contract progress — VIDEO

More than 300 Southwest Airlines pilots on Wednesday took to picket lines in Las Vegas, protesting the lack of progress in drafting a new contract after four years of negotiations.

Representatives of the Southwest Airlines Pilots' Association stood peacefully along Tropicana Avenue and Arville and Cameron streets around The Orleans where Southwest Chairman and CEO Gary Kelly was about to address thousands of the airline's employees gathered for one of the company's "message to the field" addresses outlining past performance, future plans and announcing the previous year's profit-sharing totals.

Dozens of motorists honked their horns in support of the pilots, who wore shirt-and-tie uniforms and carried signs with various slogans.

Kelly was expected to announce in his presentation Wednesday that most Southwest employees would be receiving a 15 percent profit-sharing bonus for their work in 2015.

Southwest is by far the busiest commercial air carrier at McCarran International Airport with an average 204 daily flights and a share of about 43 percent of the seats into the market.

"Las Vegas is one of Southwest's top destinations and home base to many of our frustrated pilots," said Jon Weaks, a Southwest captain and president of the union. "We are taking the opportunity today to show the residents of Las Vegas, the traveling public, other employee groups and Southwest management that four years is far too long to negotiate during times of record-setting profits. Now is the opportunity to put employees first."

Craig Drew, senior vice president of air operations for Southwest, responded with a statement reflecting management's view.

"We were disappointed our pilots voted no on an agreement that offered them the highest pay rate in the industry," Drew's statement said.

"Today's demonstration does not change our steadfast commitment and 45-year history of serving our employees and customers. We look forward to resuming negotiations in March but until that time, we have limited insight into what SWAPA's new leadership is seeking."

Management's contract offer would have made Southwest's pilots the best paid in the industry for operators of Boeing 737 and similar narrow-body jets. Since that proposal, other carriers have offered their pilots richer contracts.

The current pilot contract became amendable — Railway Labor Act rules prohibit contracts from expiring — on Sept. 1, 2012. Union and management began negotiating a contract six months earlier.

The union, which represents 8,300 Southwest pilots, filed for mediation in November 2014 and 10 months later, the two sides reached agreement on a tentative deal that offered pilots $258 an hour.

Union leadership endorsed the contract, but when it came to a vote in November, pilots rejected it by a 62 percent to 38 percent margin.

After the agreement was voted down, the union president resigned and union members elected a new president and established a new negotiating committee.

The two sides met separately with the National Mediation Board last week and agreed to return to negotiations on March 22.

The pilots surprised management later in the week by staging an informational picket outside the company's Love Field headquarters in Dallas, the first time that a Southwest labor group led a demonstration there.

Weaks said he doesn't expect the pilots to stage anymore demonstrations before the two sides meet. Speaking from the picket line, Weaks said he thinks the pilots made their point — that they're serious about getting a contract approved as soon as possible.

The two sides have reached agreement on most pay and work rules issues, but still at issue are the terms of the formula of payment of retirement benefits. Early indications are the two sides remain wide apart on that issue.

The pilots contend that the company no longer abides by its corporate culture of watching out for the needs of employees first. In fact, one of the signs carried by pickets alluded to a quote by legendary Southwest founder Herbert Kelleher. The sign said, "'Employees come first.' — Herb Kelleher."

"Today's company event at the Orleans Arena is one that touts the famous culture of Southwest Airlines," Weaks said. "SWAPA believes this culture of putting employees first no longer exists, but its return is key to recruiting the best qualified pilots," he said.

"We want to ensure that the pilot contract at Southwest is beyond merely competitive with other airlines and makes Southwest the destination of choice for the next generation of aviators," he said.

Contact reporter Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find @RickVelotta on Twitter.