Southwest Airlines flight attendants ended a long-standing labor dispute and overwhelmingly ratified a new contract that would increase their pay by an average of 31 percent over the course of the six-year deal, the union said on Friday.

Southwest Airlines and the Transport Workers Union Local 556 ended more than two years of talks and announced last month they had struck a tentative contract. Voting started earlier in July and almost 83 percent of the votes cast were in favor of the deal, the union said.

The deal between Southwest and the union is effective from 2002 through 2008 and will provide pay increases of between 22 percent and 126 percent over the course of the contract, the union said.

The union said a newly hired flight attendant makes about USD$16,760 and would see a base pay increase of some USD$2,300 over 12 months under the new deal. The average flight attendant has a base pay of about USD$24,500 and would see an increase of some USD$3,000 over 12 months under the deal.

The new contract also provides changes in work rules that the union bills as "industry leading," as well as providing pay protection provisions and stock options for flight attendants. The stock options are new for the labor group.

The union represents about 7,400 flight attendants. It was the last major labor group at Southwest, the most heavily unionized major US airline, without a new contract. The main stumbling block in the talks had been wages.

The union said the deal benefits its members and also allows Southwest to maintain its low-cost advantage.

"With this contract, we are better able to do our jobs, and improved wages and benefits will keep us smiling," said Thom McDaniel, the union's president.

Southwest officials also applauded the vote.

"We are so pleased that our superb flight attendants voted to accept the contract presented to them by Southwest Airlines and their union," said Colleen Barrett, Southwest's president.

The pact comes at a time when most other carriers -- which have struggled over the past few years while Southwest has made consistent profits -- have gone to their employees seeking concessions to help firm up their shaky finances.

(Reuters)