15 September: Air Canada and the union representing 5,200 of its pilots have reached a tentative four-year agreement, averting a potential strike or lockout that could have disrupted travel for over 100,000 daily passengers. The agreement, announced early Sunday, prevents a major shutdown that was set to begin on Wednesday. Both sides had been preparing to issue 72-hour notices for strike action or a lockout before the deal was reached.
If ratified, pilots will receive a cumulative pay increase of 41.7% over the four-year period. In the first year, pay rates will rise by 26%, retroactive to September 30, 2023, followed by an additional 4% annually until 2026. The Air Line Pilots Association (ALPA) estimates this deal could generate around $1.9 billion in earnings for pilots over the contract’s duration.
Air Canada emphasized that flights, including those operated by Air Canada Rouge, will proceed as scheduled while union members vote on the proposed contract. The airline also confirmed that passengers who rescheduled their flights due to potential labor disruptions can return to their original bookings at no extra cost, pending availability.
Charlene Hudy, chair of the Air Canada Master Executive Council at ALPA, expressed satisfaction with the agreement, which ends the decade-old framework pilots have been operating under. She credited the determination of the pilots and their consistent engagement throughout the nearly 15-month negotiation process.
The union had previously argued that Air Canada, despite recording record profits, was offering compensation below market standards, with many pilots taking on second jobs to make ends meet. Air Canada had offered more than a 30% salary increase over four years but described the union’s demands as unreasonable.
Canada’s Labour Minister Steven MacKinnon praised both parties for their efforts to reach a negotiated settlement, emphasizing that such agreements are the best way forward. He commended the airline and pilots for approaching the talks with seriousness and determination to avoid disrupting air travel for Canadians.
