Air Canada and the union representing its pilots have reached a labor agreement that could prevent a shutdown of Canada’s largest airline. The talks between the company and the Air Line Pilots Association have resulted in a tentative four-year collective agreement, which the airline announced in a statement early Sunday.
The prospective deal acknowledges the pilots’ contributions to both Air Canada and Air Canada Rouge while establishing a new framework for the company’s growth. Details of the agreement will remain confidential until union members ratify it and the airline’s board of directors approve it within the next month, according to the airline.
The Air Canada Master Executive Council of the pilots’ association has voted to approve the tentative agreement on behalf of the 5,400 Air Canada pilots. The union stated that upon review and ratification by a majority of its members, the deal could bring an additional $1.9 billion to the pilots over the agreement’s duration.
The agreement was achieved after weeks of intense negotiations focusing on key issues like compensation, retirement, and work rules, as mentioned by Charlene Hudy, the executive council’s chair. Federal Labor Minister Steven MacKinnon confirmed the agreement and commended both the company and the union for their efforts in avoiding disruptions for Canadians.
The airline and its pilots have been engaged in contract discussions for over a year, with pilots advocating for wages comparable to their U.S. counterparts. Despite Air Canada’s record profits, the pilots have felt the company’s compensation offer was below market standards.
While the two sides were at a potential brink of issuing a 72-hour strike or lockout notice starting Sunday, the agreement prevented such actions. The airline had prepared a wind-down plan upon receiving the notice, leading to a complete work stoppage by September 18.
Air Canada had committed to negotiations but cited union wage demands surpassing what the company could afford. Despite not seeking federal intervention, the airline warned the government to be ready to prevent significant disruptions should the airline face a shutdown affecting over 110,000 daily passengers.
Early in August, the Canadian government had intervened in a railway shutdown by requesting the industrial relations board to issue a back-to-work order. Business leaders had urged the government to take action to avoid economic disruptions caused by an airline shutdown.
NDP Leader Jagmeet Singh expressed opposition to any back-to-work legislation proposed, emphasizing the party’s stand against forcing pilots back to work.
