A bare majority of pilots at Southwest Airlines has rejected a proposed new contract that had been endorsed by union leadership. The Southwest Airlines Pilots Association said nearly 51% of voting members rejected the pact, which included a 2% annual pay hike. A Southwest VP said the company was "naturally disappointed" with the outcome of the vote. "We welcome the opportunity for our negotiating teams to re-engage and work toward an agreement that best meets the needs of our company and our outstanding pilots during these challenging economic times," he said.

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