Southwest Airlines must face a lawsuit that alleges the carrier has intimidated and disciplined pilots participating in its pilots' union, a federal court has ruled.
In the Monday ruling, the US Court of Appeals for the Fifth Circuit overturned a previous decision by a lower court that had dismissed Southwest Airlines Pilots Association's case, arguing that it should be resolved through arbitration under the Railway Labor Act, Bloomberg Law reported.
In the latest ruling, the court said that the Southwest Airlines Pilots Association was able to sufficiently plead that the Dallas-based carrier had "anti-union animus" to allow the case to proceed in federal court.
The lawsuit originated from an incident involving Timothy Roebling, a check pilot who was stripped of his responsibilities and pay by Southwest. "Check pilots" are a special group of about 300 pilots who are responsible for training other pilots and work closely with the airline's management.
The airline cited Roebling's use of vulgarity as justification for the disciplinary actions. However, the union said that the measures were a result of Roebling's involvement with the union's check pilot committee.
Chief Judge Jennifer Walker Elrod said that while she may agree with the lower court's ruling that the issue was minor under the Federal Railway Labor Act, the accusations against Southwest warranted a hearing in federal court, Reuters reported.
The judge further said that the airline's threats created an environment of fear among check pilots regarding potential retaliation for engaging with the union, including Roebling's supervisor's threats to revoke his qualifications.
This situation distinguished the case and provided substantial support for the union's claim that Southwest intended to "weaken" or "destroy the operational capacity of the union."
The airline, on the other hand, expressed disagreement with the court's decision and rejected the union's allegations, stating, "We are evaluating our options."
The case was returned to U.S. District Judge Barbara Lynn in Dallas federal court, who had dismissed it in September 2023.
Meanwhile, a recent report said that activist investor Elliott Investment Management and Southwest Airlines are nearing a settlement agreement that could avoid a possible proxy battle over control of the board.
Southwest has been struggling since the pandemic and has tried its best to remain profitable despite economic woes. To improve its operations, the airline made strategic adjustments, including dropping its traditional marquee open seating system and the addition of seats to provide customers with more legroom.
In a recent announcement, the airline revealed that it was "executing a transformational plan including tactical and strategic initiatives that will position the airline to elevate the customer experience, improve financial performance and drive sustainable shareholder value."
