Photo credit: The Independent
As talks with the pilots’ union reach a near deadlock over “inflexible wages,” Air Canada (AC TO) is finalizing plans to suspend most of its operations.
Air Canada is Canada’s largest airline.
The airline and its low-cost subsidiary, Air Canada Rouge, operate nearly 670 daily flights. If they disagree with the Air Line Pilots Association, the shutdown might affect 110,000 passengers daily.
The airline’s pilots have been pushing to close the salary gap with their US peers, who signed lucrative labour deals in 2023 amid pilot shortages and strong travel demand.
Charlene Hudy, who heads the local union representing the pilots, said, “Air Canada should stop threatening to disrupt air travel and come to the bargaining table with proposals to keep the flagship Canadian carrier competitive in the global aviation market.”
Meanwhile, the company said talks with ALPA, which represents more than 5,200 pilots, are continuing, but both parties remain far apart.
CEO Michael Rousseau said, “Air Canada believes there is still time to reach an agreement with our pilot group, provided ALPA moderates its wage demands, which far exceed average Canadian wage increases.”
Previously, ALPA pilots had insisted the current pay rates at US rival Delta Air Lines are up to 45% higher than the Canadian carrier’s hourly pay rates.
On August 27, the union and the airline entered a mandated three-week cooling-off period. During this period, the union cannot go on strike. Air Canada is anticipating that if the complete shutdown occurs, normal operations might take seven to ten days to resume.
Canadian Labour Minister Steven Mackinnon said, “Our government firmly believes in the collective bargaining process, and Canadians are counting on the parties to get a deal.”
