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Southwest Airlines pilot discontent as the union pushes to be paid for industry leading productivity

Analysis

The record profitability enjoyed by US airlines during the past couple of years has arguably added another layer of complexity onto already intricate labour negotiations. Airlines are faced with explaining generous shareholder rewards while stressing the need to preserve competitive costs.

Negotiations between Southwest Airlines and its pilots - that have dragged on for four years - represent some of the most contentious collective bargaining in the airline's history; they have culminated in a recent lawsuit filed by the pilots to prevent Southwest from operating the Boeing 737 Max next-generation narrowbody until the two sides broker a new contract. The airline is scheduled to take first deliveries of the aircraft in 2017.

Pilots are suing the airline as Southwest weighs a contract proposal that it received earlier in 2016, which entails ample raises. Southwest's pilots argue that they are the most productive pilot workforce among the largest four US airlines. Company executives, meanwhile, have to satisfy the demands of both labour and Wall Street as they work toward reaching a new collective bargaining agreement with pilots.

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