Show us the money, union says (to Southwest Airline)

http://www.star-telegram.com/business/story/426786.html

By TREBOR BANSTETTER
Star-Telegram Staff Writer

DALLAS -- Southwest Airlines has long used stock options to enrich employees during good times while keeping labor costs in check, but the carrier's poor stock performance in recent years has ground workers seeking more traditional compensation.

Officials with the Transport Workers Union of America, which represents nearly 7,000 ramp workers, operations agents, freight agents and provisioning employees, are asking for wage increases, retiree medical benefits and work-rule changes as they open negotiations on a new contract. Union leaders said they weren't interested in stock-based compensation, given the poor performance of options that were granted two years ago, when the airline extended the contract. Those options currently have no value.

Union officials said the airline should be able to boost workers' pay and benefits despite high fuel prices and worries about an economic downturn.

"If you look back, Southwest is the only airline that has proven it can make money during a recession," said Dan Akins, an airline consulted hired by the union.

He said Southwest can also buy fuel at cheaper prices than most of its competitors, thanks to hedging contracts.

The union briefed reporters on its strategy at Dallas Love Field on the eve of the airline's fourth-quarter and annual earnings report. Southwest, which is based in Dallas, is expected to announce a profit for both periods today. Wall Street estimates that the airline will report a profit of 10 cents per share for the fourth quarter, and 60 cents per share for 2007.

FULL story at link.