Air Canada and Pilots’ Union Reach Tentative Deal, Averting Strike

News of a new agreement with the Air Line Pilots Association (ALPA) came shortly after midnight on Sept. 15, when Air Canada issued a press release just days ahead of a potential work stoppage that would have impacted 110,000 passengers and nearly 670 daily scheduled flights.

“Air Canada and Air Canada Rouge will continue to operate as normal,” the release said.

“Customers who used the airline’s labour disruption goodwill policy to change their flights originally scheduled from between September 15 and 23, 2024, to another date before November 30, 2024, can change their booking back to their original flight in the same cabin at no cost, providing there is space available.”

“Negotiated agreements are always the best way forward and yield positive results for companies and workers,” the minister said. “Thanks to the hard work of the parties and federal mediators, disruptions have been prevented for Canadians.”

On Sept. 12, while urging the federal government to direct a binding arbitration, the airline said that if a 72-hour strike or lock-out notice were issued on Sept. 15, it would trigger an “orderly shutdown” of Air Canada and Air Canada Rouge, with a complete shutdown as early as Sept. 18.

In the lead-up to Sunday’s deadline, both Air Canada and ALPA said they remained far apart on the issue of pay, which was central in the negotiations that had stretched over 14 months.

‘Confidential’

In the news release on Sept. 15, Air Canada said the new four-year contract “recognizes the contributions and professionalism” of its pilots. Details of the new deal, however, were not announced.

“Terms of the new agreement will remain confidential pending a ratification vote by the membership, expected to be completed over the next month, and approval by the Air Canada Board of Directors,” the airline said.

ALPA says the tentative agreement (TA) will provide pay raises and improve work rules and retirement benefits for its members.

“If ratified, the TA will generate an approximate additional $1.9B of value for Air Canada pilots over the course of the agreement,” the union said in a news release issued after midnight on Sept. 15.

The union had argued that even though Air Canada continues to post record profits, the airline still expects its pilots to receive compensation that is below market average. The union also said about a quarter of pilots take on second jobs, with about 80 percent of those doing so out of necessity.

Air Canada responded on Sept. 12, saying it has offered a 30 percent wage increase to the pilots, while also improving their benefit pension, health care plans, work-life balance provisions, and scheduling that would allow them to have more time at home. It said ALPA “refuses to moderate excessive compensation demands.”

‘Won’t Intervene’

Besides Air Canada, business groups such as the Canadian Chamber of Commerce, U.S. Chamber of Commerce, and Business Council of Canada, issued a joint statement on Sept. 13 calling on the federal government to step in.

“The Government of Canada must take swift action to avoid another labour disruption that negatively impacts cross-border travel and trade, a damaging outcome for both people and businesses,” the statement said.

ALPA argued that government intervention violates the constitutional rights and freedoms of Canadians. In a statement on Sept. 13, the association’s president, Capt. Tim Perry, asked Ottawa to respect worker rights.

“On behalf of all ALPA Canada members, I insist the federal government allow collective bargaining to run its course, free from intervention, and allow any Parties to a labour dispute to remain at the bargaining table to put in the hard work required to come to a freely negotiated agreement,” he said.

He said the government wouldn’t intervene unless it became clear that no negotiated agreement was possible.