On September 15, Air Canada announced it had reached a tentative agreement with its pilots’ union, concluding a four-year collective agreement that ends a long-standing dispute over wages and working conditions. The agreement, which was finalized at the last minute to avoid a strike or lockout, allows the airline to operate without disruption, avoiding flight cancellations scheduled for September 18.
Air Canada and its low-cost subsidiary Air Canada Rouge operate approximately 670 flights daily, serving 110,000 passengers and cargo. The terms of the new agreement with the Air Line Pilots Association (ALPA), which represents more than 5,200 pilots, will remain confidential until ratified by union members, a vote expected to conclude next month.
In a statement, Air Canada recognized the professionalism and contributions of its pilots and noted that the agreement also lays the foundation for the airline’s future growth. The ALPA said the deal would add CAD1.9 billion ($1.4 billion) in value for pilots over the four-year term, representing a 46 percent increase over the previous contract, which expired in September 2023.
First Officer Charlene Hudy, chair of the Air Canada ALPA Executive Board, emphasized that progress has been made on critical issues such as compensation, pensions and working conditions after several weeks of intensive negotiations. If ratified, the contract will retroactively cover the period from September 30, 2023 to September 29, 2027. One of the key points in the negotiations was the pilots’ demand to reduce the pay gap with their American counterparts. Pilots at United Airlines, for example, have secured a pay increase of about 42 percent, and some now earn 92 percent more than their counterparts at Air Canada – a sharp increase from the 3 percent difference in 2013.
Canadian Labor Minister Steven MacKinnon praised the deal, noting that negotiated agreements yield positive outcomes for both companies and workers. However, Prime Minister Justin Trudeau refrained from government intervention, in contrast to the swift action taken during the recent attacks on Canadian Pacific Kansas City and Canadian National Railway.
Although Air Canada had initially proposed a pay increase of more than 30 percent, along with improved pension and health care benefits, the union deemed this insufficient, arguing that its members were still working under outdated provisions from a 2014 agreement.
