....but the union driving conditions above the market rate decreases demand.
Hang on a sec though PAF, you're starting from a position with a pretty big straw man and some ill defined boundaries on top of that. First of all, who said that AIPA is driving for conditions above the 'market rate'. QF
IS the market for 744 drivers and they were the market for A330 drivers, etc until J* blinked. Now the 'market' is whatever can be negotiated.
You of all people should understand the symbiotic relationship between cost and demand. Why doesn't that apply to pilots as well?