Southwest to pay out record employee profit-share
Southwest Airlines said its employees will share in a record $228 million as part of the carrier’s profit-sharing scheme based on 2013 earnings.
This is a rise of 88% on the $121 million it paid out last year to the workforce.
"We had a great year in 2013 because of their collective efforts and contributions toward Southwest’s success and profitability," CEO Gary Kelly said.
Staff payments will be received in September, the airline said.
The airline began its profit sharing scheme 40 years ago and says it has paid out more than $2.5 billion in that time to eligible staff members.
It also announced it will set aside $269 million towards 401K plans for Southwest and AirTran employees and healthcare, wellness and other staff benefits amount to a further $580 million.
"In total, that’s more than $1 billion dedicated to the wealth and wellbeing of Southwest employees in 2013 alone, on top of base salaries," the company said in a press release.
The company is at pains to highlight the cost of welfare and performance-related benefits it offers to its near 45,000-strong workforce.
Southwest is currently in protracted negotiations with several unions and is arguing for more flexibility in using part-time contract workers.
It also wants to give bonuses based on performance rather than fixed salary increases.
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