Air Canada faces a possible strike, grounding flights as wage disputes with pilots remain unresolved
Air Canada is preparing for a possible shutdown of most operations next week due to stalled contract negotiations with its pilots’ union, according to BNN Bloomberg.
Talks between Air Canada and the Air Line Pilots Association (ALPA) have yet to reach an agreement, with the airline stating that they remain far apart. As a result, Air Canada warned that it might begin grounding aircraft as early as Friday, with a strike notice potentially arriving by Sunday.
The airline said that services such as freight are already being affected, and an orderly shutdown of both Air Canada and Air Canada Rouge would start once a 72-hour strike or lockout notice is issued. If no agreement is reached, a full work stoppage could begin as early as September 18.
Air Canada’s CEO, Michael Rousseau, said in a statement that the main sticking point in negotiations is ALPA’s “excessive” wage demands. He indicated that the airline believes a deal can still be made if the union moderates its salary expectations, which he said far exceed average Canadian wage increases.
Meanwhile, the pilots' union points to what it describes as corporate greed, with Air Canada posting record profits while expecting its pilots to accept below-market wages.
“Air Canada should stop threatening to disrupt air travel and come to the bargaining table with serious proposals,” said Charlene Hudy, who heads the union's Air Canada chapter.
In anticipation of a potential strike, the airline has begun winding down some services, including holiday packages, with cargo services also facing limitations. Air Canada operates approximately 670 daily flights, transporting over 110,000 passengers.
If flights are halted, the airline estimates that returning to normal operations could take up to seven to 10 days. However, Air Canada Express flights will continue during any strike action.
The airline is allowing customers with bookings between September 15 and 23 to change their travel plans at no extra cost or receive a credit for future travel. However, compensation will not be offered as labour disruptions are considered outside the airline’s control.
Over the course of the year-long negotiations, several issues have been tentatively agreed upon, but wages remain unresolved.
ALPA, representing over 5,200 Air Canada pilots, has pushed for salaries that reflect recent increases seen in the US, where pilot contracts with major airlines have resulted in steep raises. Some pilots at US carriers now earn up to double what their Canadian counterparts make.
United Airlines pilots secured wage increases of up to 40 percent over four years, while WestJet pilots saw a 24 percent raise.
Sources close to the negotiations indicate that Air Canada has offered a 30 percent pay increase over four years, while pilots are asking for raises ranging from 30 to 60 percent.
In August, 98 percent of Air Canada pilots voted in favour of a strike mandate, showing their commitment to securing the contract terms they seek.
The Association of Canadian Travel Agencies and Travel Advisors recently urged the federal government to help resolve the dispute, noting the significant challenges facing the travel industry.
This summer, Canada's transportation sector has already experienced disruptions, including strikes at WestJet and brief shutdowns at the country’s main railways.
