Air Canada has reached a tentative agreement with the union representing more than 5,200 of its pilots, averting a potential work stoppage that could have led to flight cancellations. The preliminary deal with the Air Line Pilots Association came just days before a strike or lockout was set to begin. The new agreement, if ratified, will generate approximately $1.9 billion in additional value for Air Canada pilots over the next four years. The pilots’ union had been pushing for improved compensation, retirement benefits, and work rules in the negotiations that had been ongoing for over a year.
The airline stated that Air Canada and Air Canada Rouge will continue to operate normally while union members vote on the tentative contract. The terms of the deal will remain confidential until the membership ratifies it, expected to be completed within the next month, and is approved by Air Canada’s board of directors. The pilots’ union acknowledged the contributions and professionalism of Air Canada’s pilot group, crediting their engagement and determination for achieving the new contract. Progress was made on key issues including compensation, retirement benefits, and work rules.
In the lead-up to the deadline to issue notice of a work stoppage, Air Canada and the pilots’ union had been at odds over pay terms. The union argued that despite the airline’s record profits, pilots were being unfairly compensated, with many forced to take on second jobs. Air Canada had offered salary increases of more than 30% over four years and improvements to benefits, but the union believed their wage demands were not being met. Various business groups, including the Canadian Federation of Independent Business and the Canadian and U.S. Chambers of Commerce, had called on the government to intervene to prevent disruptions in travel and trade.
Despite calls for government intervention, Prime Minister Justin Trudeau stated that it was up to the two parties to reach a resolution. Trudeau emphasized respecting workers’ collective bargaining rights and said the government would only step in if a negotiated agreement was not possible. Air Canada had already begun preparing for a potential shutdown, with its cargo service halting operations for items like perishables. The tentative agreement between Air Canada and the pilots’ union has averted travel disruptions for the airline’s 670 daily flights and over 110,000 passengers.
The tentative deal has brought relief to passengers with travel plans on Air Canada, as they no longer face potential flight cancellations. The agreement between the airline and its pilots’ union addresses key issues including compensation, retirement benefits, and work rules, potentially providing an additional $1.9 billion in value for pilots over the next four years. The union credited the engagement and determination of the pilot group for achieving the contract. Despite tensions over pay terms, both sides were able to reach a tentative agreement, allowing Air Canada and Air Canada Rouge to continue operating normally while the membership votes on the contract and it awaits final approval.
