Air Canada announced on Sunday that they have reached a tentative agreement with the union representing over 5,200 of its pilots, avoiding a potential work stoppage. The Air Line Pilots Association agreed to a preliminary deal just days before a strike or lockout was set to begin. The new four-year contract recognizes the contributions and professionalism of the pilot group while providing a framework for the future growth of the airline. The terms of the agreement will remain confidential until union members vote on it and the Air Canada board of directors gives approval.
The two sides had been at odds over pay during negotiations that lasted more than a year. The pilots’ union argued that Air Canada is making record profits and expecting pilots to accept below-market compensation, with many pilots forced to take on second jobs out of necessity. Air Canada had offered salary increases of over 30% over four years, along with improvements to benefits, but the union deemed these offers as inflexible and unreasonable wage demands. Both Air Canada and 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 in the matter.
However, the union was against government intervention and urged Ottawa to respect workers’ collective rights and not get involved in the bargaining process. Prime Minister Justin Trudeau stated that it was up to the two sides to reach an agreement and the government would only intervene if it became clear that a negotiated deal was not possible. Air Canada had begun preparing for a possible shutdown, halting its cargo service for perishable items and putting a wind-down plan in place for passenger flights. The tentative agreement successfully averted travel disruptions for the 670 daily flights operated by Air Canada and Air Canada Rouge, ensuring the travel plans of over 110,000 passengers.
The pilots’ union will now vote on the tentative agreement over the next month before it can be ratified, and the Air Canada board of directors must also give approval. Customers who had changed flights during the labour disruption can now revert back to their original booking at no cost, provided there is space available in the same cabin. Air Canada and Air Canada Rouge will continue to operate as normal while the ratification process takes place. The tentative deal brings relief to passengers who were facing potential flight cancellations due to the looming strike or lockout, allowing them to proceed with their travel plans without disruption. Air Canada’s announcement marked a positive step towards resolving the long-standing issues between the airline and its pilots, ensuring stability and continuity in its operations.
