Sept 15 (Askume) – Air Canada (AC.TO) said on Sunday it had reached a last-minute tentative agreement with its pilots union on a new four-year collective deal, ending a deadlock over pay and benefits and averting any strikes or lockouts in the near future .
Canada’s largest airline is preparing to cancel flights for three days and completely halt operations from September 18.
Flights will operate as normal for the time being. Air Canada and Air Canada Rouge operate approximately 670 flights per day, transporting approximately 110,000 passengers and cargo per day.
Air Canada said the terms of its new agreement with the Air Line Pilots Association (ALPA), which represents more than 5,200 pilots, will remain confidential and a member vote is expected to be completed next month.
“The new agreement recognizes the contributions and professionalism of Air Canada’s pilot team and also provides a framework for the airline’s future growth,” the airline said in a statement.
ALPA said the deal represents an additional C$1.9 billion (US$1.4 billion) in value for members over four years, a 46% increase over the previous contract that expires in September 2023.
“After weeks of intense negotiations, progress has been made on a number of key issues, including pay, retirement and work rules,” First Officer Charlene Huddy, chair of Air Canada’s ALPA chief executives committee, said in a statement.
If approved by ALPA members, the transaction would run from Sept. 30, 2023, to Sept. 29, 2027.
eliminate the pay gap
The two sides have been negotiating a new contract for the past 15 months, with pilots seeking pay levels that would close the pay gap with peers at major U.S. airlines such as United Airlines Co (UAL.O) .
Posting on the X platform, Labour Minister Steven MacKinnon praised the efforts of Air Canada and its pilots, who have shown determination to reach an agreement and prevent travel disruptions.
“A negotiated settlement is always the best way forward and delivers positive outcomes for companies and workers,” he said.
Prime Minister Justin Trudeau said Friday that the Canadian government will not intervene to end the dispute, as it did last month in a case between the country’s two largest rail companies, Canadian Pacific Kansas City Corp.(CP.TO) and Canadian National Railway (CNR.TO) ended the strike within 24 hours .
Air Canada has previously offered wage increases of more than 30 per cent as well as improved pension and health benefits. But the union said the offer is not enough for its members, whose pay and quality of life terms were set in 2014.
Over the past two years, American Airlines pilots have negotiated significant pay increases in new contracts amid a travel boom and staffing shortages. For example, United Airlines’ new pilot contract includes a pay increase of about 42%.
As a result, some United pilots now earn up to 92 per cent more than their Air Canada counterparts, pilot union data shows. In 2013, the pay gap was just 3%.
(1 USD = 1.3585 Canadian Dollars)
