Air Canada announced today that should the airline’s contract discussions with its pilot union prove unsuccessful, it will be essential to seek a government mandate for binding arbitration. This action aims to prevent significant disruptions in air travel, which could affect the itineraries of over 110,000 passengers daily and hinder the timely delivery of critical cargo shipments.
The contract negotiations between the company and the Air Line Pilots Association (ALPA), which represents 5,200 pilots at Air Canada and Air Canada Rouge, have now extended over 100 days. A tentative agreement has been achieved on 70 percent of the more than 1,000 proposed amendments put forth by ALPA. Air Canada has proposed unprecedented wage increases; however, the union has declined these offers, citing wage levels in the United States as a benchmark. The discussions have reached an impasse, and both parties may find themselves in a legal strike or lock-out situation as soon as September 18, 2024.
As negotiations approach a standstill and the window for resolution diminishes, the travel arrangements of numerous Canadians are at risk. We are implementing all possible strategies to minimize any adverse effects; however, it is important to acknowledge that even a brief work stoppage at Air Canada could lead to significant and extended disruptions for our customers, given the intricate nature of our global operations. Therefore, while we are dedicated to achieving a negotiated agreement with ALPA, it is essential for the federal government to be ready to step in should discussions falter before any travel interruptions occur, stated Michael Rousseau, President and Chief Executive Officer of Air Canada.
Both sides have convened for a total of 100 days within the last 15 months, during which they have negotiated 1,110 issues. Throughout this period, they have provisionally agreed to revise more than 70 percent of the articles in order to enhance and modernize their collective agreement. Notable changes include a 30 percent wage increase, a figure that is unprecedented in Canada, substantial enhancements to the pilots’ defined benefit pension and health care plans, improved work-life balance provisions, and scheduling adjustments that allow pilots increased time at home. In exchange, Air Canada has not requested any concessions.
On September 9, 2024, Air Canada announced that it is developing contingency plans to facilitate an orderly cessation of operations. This process would commence following the issuance of a 72-hour strike or lock-out notice, which may be issued at any time after 00:01 EDT on Sunday, September 15. Flights across the network would be systematically cancelled over a period of three days, potentially leading to a total shutdown by 00:01 EDT on Wednesday, September 18. However, services operated by Air Canada Express would remain unaffected.
Air Canada is not currently requesting immediate action. Nevertheless, the airline asserts that the Government of Canada should be prepared to utilize its authority to implement binding interest arbitration under Section 107 of the Canada Labor Code, should negotiations fail to yield an agreement prior to the onset of a work stoppage. Such a stoppage, along with the systematic cessation of operations, would have an immediate impact on the travel plans of 110,000 individuals daily and would halt the transport of significant amounts of essential air cargo. The airline points to recent government interventions in labor disputes within the rail, port, and airline sectors in Canada as a relevant precedent. Furthermore, the Code is intended to maintain industrial peace in situations where parties reach a deadlock following substantial collective bargaining efforts.
