Air Canada announced, on September 15, that it had tentatively reached an agreement with the union representing its pilots. This resulted in a four-year collective agreement that resolved a long-running dispute about pay and benefits. The agreement, which was finalised in the last moments to avoid a possible strike or lockout and to allow the airline to continue operating without disruption, prevented the planned flight cancelations set for September 18th.
Air Canada and Air Canada Rouge, its low-cost subsidiary operate 670 flights per day, serving around 110,000 passengers and cargo. The terms of a new deal with Air Line Pilots Association (ALPA), a union that represents over 5,200 Pilots, will be kept confidential until ratified. This vote is expected to take place next month.
Air Canada acknowledged in a press release the professionalism and contributions made by its pilots. The airline also noted that the agreement laid the foundations for the future growth of the airline. The ALPA stated that the deal will add CAD1.9 billion in value to pilots during its four-year term, marking a 46 percent increase over the previous contract which expired in September of 2023.
Air Canada has asked that the Canadian Government be ready to act in the event of a potential strike by pilots, which could start on September 18, and cause major disruptions. The airline is currently in negotiations with the union of pilots, but finds that their demands are unreasonable. A strike could affect 110,000 passengers and freight daily.
After several weeks of intense negotiation, First Officer Charlene HUDY, chair of the Air Canada ALPA Executive Council, highlighted that progress had been made on important issues such as compensation and retirement. The contract will cover retroactively the period between September 30, 2023 and September 29, 2027 if it is ratified. One of the key points during the negotiations was the demand by the pilots to reduce the wage difference with their US counterparts. For instance, pilots at United Airlines have secured raises of around 42 per cent, and some now earn 92 per cent more than their peers at Air Canada—a sharp increase from the 3 per cent gap in 2013.
Steven MacKinnon, Canadian Labour Minister, praised the agreement and noted that negotiated agreements have positive outcomes for companies and employees. Prime Minister Justin Trudeau resisted government intervention in contrast to the swift actions taken during recent strikes at Canadian Pacific Kansas City & Canadian National Railway.
The union considered Air Canada’s initial proposal for a wage hike of more than 30%, along with improved health and pension benefits, insufficient. It argued that its members still worked under outdated provisions from an agreement signed in 2014.
