Air Canada Successfully Negotiates Last-Minute Agreement with Pilots' Association, Preventing Industrial Action
Before the potentially agreeable settlement was inked, Canada's largest airline was readying to progressively scrap flights over a three-day span and cease operations as early as 12:01 a.m. EDT on September 18th, Wednesday.
Air Canada and Air Canada Rouge, accounting for roughly 670 daily flights carrying approximately 110,000 daily passengers and cargo, will now carry on as usual, according to the airline's announcement.
Air Canada disclosed in a statement that the specifics of their new contract with the Air Line Pilots Association (ALPA), representing over 5,200 pilots, would remain concealed until a member ratification vote, anticipated to be concluded within the upcoming month.
The ALPA declared that the agreement would bring an extra C$1.9 billion ($1.40 billion) in worth to members during its four-year duration, signifying a 46% growth compared to the expired contract from September 2023.
First Officer Charlene Hudy, chair of the Air Canada ALPA master executive council, commented, "After numerous weeks of continuous around-the-clock negotiations, advancements were made on significant issues such as compensation, retirement, and working conditions."
The two parties have been engaged in contract negotiations for the past 15 months, with the pilots pushing for remuneration rates that would lessen the wage disparity with their U.S. counterparts, like United Airlines.
Labour Minister Steve MacKinnon announced via X that potential travel disruptions for Canadians were avoided due to the collective effort of the parties and federal mediators.
Prime Minister Justin Trudeau declared on Friday that the Canadian government would refrain from intervening to resolve the dispute, just as they did previously within 24 hours to terminate a strike at the two largest rail companies, Canadian Pacific Kansas City and Canadian National Railway.
Air Canada had earlier proposed a wage escalation of more than 30%, as well as enhanced pension and health benefits. However, the union argued that the proposal was not satisfactory for their members, who have been working under agreements negotiated in 2014 for wages and life standards.
Pilots at U.S. airlines have secured substantial wage hikes in recent contract deals amid a travel surge and staff shortages. United's new pilot contract, for instance, included wage increases of around 42%.
As a consequence, certain United pilots now earn 92% more than their Air Canada counterparts, the pilots' association's data suggests. In 2013, the pay disparity was merely 3%.
Scribed by Gnaneshwar Rajan in Bengaluru; Additional reporting by Rajesh Kumar Singh in Chicago; Edited by Jamie Freed
The business operations of Air Canada and Air Canada Rouge were initially at risk due to the labor dispute, but the agreement with the Air Line Pilots Association has allowed them to continue as usual.
The resolution of the dispute between Air Canada and their pilots has prevented potential travel disruptions for Canadians, which could have negatively impacted various businesses relaying on air travel.
