Air Canada pilots, who were on the verge of going on a strike in the month of September, have now ratified a new collective agreement with the airline, as per the announcement made by the pilots’ union Thursday.
The agreement with the Canadian national Airlines grants the carrier’s roughly 5,400 pilots a cumulative wage hike of nearly 42 per cent over four years.
Air Canada pilots repeatedly said they wanted to use this contract to narrow the pay gap between themselves and their American counterparts.
The raise, once realized, will outrace the gains secured by pilots at the three biggest U.S. airlines last year, that saw pay hikes ranged between 34 and 40 per cent, though they started from a higher baseline.
The ratification, which the Air Line Pilots Association (ALPA) said in a statement was approved by 67 per cent of members who voted, ensures pilots will have a contract until 2027 that includes
“significant” pay increases and “improvements to quality of life.”
“This contract is the largest labour agreement in Air Canada’s history and reflects contributions that our pilots bring to the success of our airline,” Charlene Hudy, first officer and chair of the Air Canada ALPA master executive council, said in the statement.
“This agreement helps restore what Air Canada pilots have lost over the past two decades and creates a strong foundation from which to build on.”
The union had earlier threatened to walk off the job last month after contract talks stalled, which could have disrupted travel plans for thousands of passengers.
The tentative contract, shaped last month after more than a year of negotiations, averted a strike that would have seen some 700 flight cancellations and 110,000 passengers affected on a daily basis.
The agreement was announced shortly after a midnight deadline when the airline or the union were due to issue a 72-hour strike or lockout notice.
The contract is effective immediately and includes a ratification payment to recognize that the pilots have been without a collective bargaining agreement since Sept. 30, 2023. The new agreement will expire Sept. 29, 2027.
ALPA has said the new contract will generate approximately an additional $1.9 billion of value for Air Canada pilots over four years.
In a statement, Air Canada said it welcomed the ratification.
“We are very pleased this new collective agreement has been approved by our pilot group,” president and CEO Michael Rousseau said.
“The agreement is mutually beneficial and it will keep our pilots the best compensated in Canada and provide the work-life balance improvements they were seeking.”
In the lead-up to the strike deadline, the two sides said they remained far apart on the issue of pay, which was central in the negotiations that had stretched for more than a year.
While in preparation for the shutdown, Air Canada restricted certain types of cargo shipments, such as perishables, and adjusted some aircraft flying schedules. No flights were cancelled, however.
Canadian Federal government stayed away from the labour dispute, although Labour Minister Steve MacKinnon had appealed to both the airline and the union to reach a deal by highlighting the economic and consumer impacts of a work stoppage.
The latest development now maintains Air Canada pilots' position as the highest-paid pilots in commercial air travel in Canada, while providing the Corporation with the stability and flexibility it needs to pursue its growth strategy.
“We look forward to working with these new, improved pay rates and better working conditions as we continue to fly our passengers across Canada, North America and around the world,” added Charlene Hudy.
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