Details of Air Canada pilot deal revealed

Air Canada and the Air Line Pilots Association (ALPA), representing over 5,200 pilots, reached a last-minute agreement.  

This deal averted a labour disruption that many believed would have significantly impacted Canada’s economy, according to Financial Post.

The tentative four-year deal was finalized on September 15, just before the expected 72-hour strike or lockout notice was set to take effect. 

Bloomberg, citing an unnamed source, reported that the agreement includes a 26 percent upfront pay raise and a 4 percent annual wage increase over the next three years, along with other benefits.  

If ratified, the deal would increase pilots’ compensation by 42 percent over four years and cost Air Canada approximately $1.9bn, according to ALPA. 

Air Canada pilots have been operating under a contract signed in 2014, which provided for a 2 percent annual salary increase. In 2023, captains earned between $215,075 and $351,958 annually, depending on the type of aircraft they flew.  

On average, narrow-body pilots worked 13.31 days per month, while wide-body pilots worked 11.78 days per month. Air Canada had initially offered a 30 percent wage increase, which the union rejected, citing wage levels in the US. 

Air Canada pilots have been aiming to close the pay gap with their US counterparts. ALPA’s Air Canada chair, Charlene Hudy, noted that members sought a contract comparable to those at competing airlines like United Airlines and Delta Air Lines.  

Pilots at Delta secured a 34 percent cumulative pay increase in March 2022, while United Airlines pilots approved a contract with a 40 percent total compensation boost in September of the same year. 

In comparison to other Canadian airlines, WestJet pilots reached an agreement in June 2023 that included a 24 percent pay raise over four years.  

WestJet’s top B787 pilots are set to earn $319.25 per hour, increasing to $347.16 by 2026. Under Air Canada’s existing contract, pilots with similar experience would have earned $313.81 per hour after 11 years of service. 

Around the time WestJet was negotiating its new contract, Air Canada pilots voted to merge their union, the Air Canada Pilots Association, with ALPA. This merger resulted in approximately 95 percent of commercial pilots in Canada now being represented by ALPA. 

The tentative agreement, which comes after nearly a year of negotiations, will be voted on by union members over the next month. A majority vote is required for ratification. Until then, specific details of the agreement will remain confidential. 

Air Canada announced that customers who utilized the airline’s labour disruption goodwill policy, for flights scheduled between September 15 and 23, can change their bookings back to their original flights at no cost, provided there is available space.  

The airline confirmed that both Air Canada and Air Canada Rouge will continue operating normally during this period.