Southwest Airlines is withdrawing from a confidentiality agreement it previously sought with union leaders for a meeting on Elliott Investment Management.
On Monday, Bill Bernal, president of Transport Workers Union 556, which represents Southwest flight attendants, released a statement saying the union and others had been contacted about a meeting regarding activist hedge fund Elliott, but were asked to sign a nondisclosure agreement that included “terms and conditions that severely limit the union’s ability to maintain open and transparent communication” with members.
Southwest has since eliminated the intelligence agreement, according to a union update posted on Instagram on Wednesday.
“I am pleased to report that the company has shown some flexibility and is now willing to accommodate our concerns regarding communication with members,” Bernal said in the memo. “They have agreed to meet without many of the restrictions previously imposed. As such, the meeting will take place soon and I plan to update everyone afterward.”
Southwest will share public information during the meeting, the company confirmed.
Following the union’s memo on Monday, members shared their thoughts on social media. Some expressed great disappointment with the union’s decision. Others praised their union’s decision.
Elliott disclosed on Monday that he owns a 9.7% stake in the company, bringing him closer to calling a shareholder meeting and potentially calling for a vote to replace directors or executives. The hedge fund has been aggressively buying common stock to push for change at the airline. Elliott has already met with union leaders representing Southwest’s flight attendants and pilots, as well as the union for ramp, operations, supply and cargo agents.
Elliott had previously announced its intention to call an extraordinary meeting of shareholders and elect ten new board members.
Southwest and Elliott will meet on September 9. Southwest’s investor day is scheduled for September 26.
