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Air Canada CEO: Ottawa should "be prepared to intervene" if labour talks fail
Air Canada said Tuesday (Sept. 12) that if the airline's contract negotiations with its pilot union fail, a government direction for binding arbitration will be necessary to avoid a major disruption of air travel that would upset the plans of 110,000 or more travellers a day and delay time-sensitive cargo shipments.
There have now been 100 days of meetings in contract negotiations between the company and the Air Line Pilots Association (ALPA), which represents 5,200 pilots at Air Canada and Air Canada Rouge.
According to a press release, a tentative agreement has been reached on 70 per cent of the more than 1,000 proposed changes suggested by ALPA.
READ MORE: Navigating Air Canada’s potential strike has been “a complete nightmare,” says travel advisor
Air Canada says it has offered “unprecedent wage increases, which the union has refused, publicly citing U.S. based wage levels.”
The negotiations have stalled between the parties, who will be in a legal strike or lock-out position as early as September 18, 2024.
"With talks nearing an impasse and time for negotiation running out, the travel plans of hundreds of thousands of Canadians are hanging in the balance. We are taking all measures to mitigate any impact, but the reality is even a short work stoppage at Air Canada could, given the complexity of our business operating on a global scale, cause prolonged disruption for customers. So, while we remain committed to reaching a negotiated settlement with ALPA, the federal government should be prepared to intervene if talks fail before any travel disruption starts," said Michael Rousseau, president and CEO of Air Canada.
READ MORE: ACTA kicks off Summit in Toronto, urges Air Canada & union to find a resolution ASAP
The parties have met for 100 days over the past 15 months, during which 1,110 issues have been subject to negotiation, Air Canada says.
Over this time, the parties have tentatively agreed to amend over 70 per cent of the articles to improve and modernize their collective agreement. These include a 30 per cent wage increase, (“Which is unprecedented in Canada,” the airline said), improvements to the pilots' defined benefit pension and health care plans, greater work-life balance provisions, and scheduling improvements that among other things give pilots more time at home. In return, Air Canada has sought no concessions.
Contingency plans
Earlier this week, Air Canada said it is preparing contingency plans to suspend flying through an orderly wind down of operations.
It would begin once a 72-hour strike or lock-out notice is issued, which can occur any time after 00:01 EDT on Sunday, September 15.
Flights throughout the system would be progressively cancelled over three days, with a complete shutdown as early as 00:01 EDT on Wednesday, September 18.
Services by Air Canada Express would not be affected.
Not seeking immediate intervention
Air Canada says it is not seeking immediate intervention. However, the carrier believes the Government of Canada should prepare in the event talks conclude without an agreement to use its powers to direct binding interest arbitration under Section 107 of the Canada Labour Code before a work stoppage becomes effective.
Air Canada says recent government interventions in rail, port and airline labour disruptions in Canada “provide a precedent.”
The Labour Code is designed for use to ensure industrial peace in cases where parties reach an impasse after meaningful collective bargaining has occurred, the airline said.
ACTA calls for action
The Association of Canadian Travel Agencies and Travel Advisors (ACTA’s) 2024 Summit series kicked off in Toronto on Thursday (Sept. 12) and addressed the potential strike.
“We are urging Air Canada, the [Air Line Pilots Association] union and federal government to work hard together and come to a resolution,” said Wendy Paradis, ACTA's president, addressing a ballroom full of some 500 travel advisors at the Toronto Congress Centre,. “Our message is to negotiate and come to a resolution as soon as possible.”
Canadian business leaders also convened in Ottawa today to call on federal government to take action.
Canada cannot afford another major disruption to its transportation network. A labour disruption at Air Canada would ripple through our economy, from tourism to critical supply chains. The federal government must be prepared to intervene if necessary," said Goldy Hyder, president and CEO of the Business Council of Canada.
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