Air Canada offers pilots 30% pay increase as strike deadline nears: report

Air Canada has offered its more than 5,000 pilots a pay boost of about 30 per cent over the next three years as a potential strike inches closer, BNN Bloomberg is reporting.

According to the Sept. 4 story, Air Canada pilots would receive a minimum 20 per cent increase initially, followed by annual increases spread across over a three-year period.

Air Canada pilots with one to four years of service would receive more pay, the story claims.

BNN did not name its sources. It said it obtained its information from people “familiar with the matter” who asked not to be identified because the discussions are private. 

Under the proposed offer, an Air Canada captain with 10 years of experience flying a widebody aircraft with a current salary of just over C$350,000 per year may see an increase of more than C$100,000 over the lifespan of a contract, the story points out.

Air Canada’s offer reportedly includes enhancements to pension and health benefits as well. 

Goodwill policy activated

Last month, Air Canada’s pilots, who are represented by the Air Line Pilots Association (ALPA), voted overwhelmingly to approve a strike mandate, putting them in a position to walk off the job as early as Sept. 18, 2024 (initial reports stated Sept. 17, but industry associations, like the Association of Canadian Travel Agencies and Travel Advisors, and Air Canada pilots, have since clarified the date).  

To prepare, Air Canada has implemented a goodwill policy to give customers with imminent travel plans some flexibility.

As per an Aug. 27 policy update, customers who have purchased Air Canada flights for the period immediately preceding and after the end of the cooling off period on Sept. 17 can change any travel already purchased at no additional cost, reads a press release.

The policy applies to all Air Canada operated flights, including Air Canada mainline, Air Canada Rouge, Air Canada Express flights operated by Jazz or PAL Airlines, and Air Canada Vacations (an additional fee may apply for hotels).

Air Canada Express flights, operated by Jazz or PAL Airlines, are not operated by Air Canada pilots and therefore will not be impacted by the end of the cooling-off period.

Air Canada and the ALPA have been in talks for more than a year. The last contract, which was ratified in 2014, provided pay boost of about two per cent annually. The pilots haven’t received a raise since last year.

The update comes after Air Canada’s pilots stage a nationwide informational picket on Aug. 27 across all Air Canada bases (Toronto, Vancouver, Montreal, and Winnipeg).

The federal government is not considering a move to force Air Canada's pilots back to work if they go on strike, according to Reuters.

F/O Charlene Hudy, chair of ALPA’s Air Canada Master Executive Council, hasn’t commented on the specifics of the proposal that was reported Wednesday. But entry-level wages are sticking points, she said.

“One-quarter of our pilots have a second job, with almost 80 per cent of those needing the job out of necessity,” Hudy told BNN. “We are trying to change that.”

A meeting between Air Canada and the ALPA is expected later this week.

“Devastating” repercussions

ACTA issued a statement on Wednesday (Sept. 4), urging Ottawa to engage promptly in facilitating a resolution to the possible strike.

Air Canada transports up to 120,000 passengers each day, ACTA pointed out.

“If its planes are grounded, the repercussions on the travel industry would be devastating, with Canadian consumers, employees, and businesses across the nation also feeling the effects,” ACTA said.

Wendy Paradis, president of ACTA, noted that members are fielding calls from people across the country and throughout the world concerned about potential disruptions to their long-awaited travel plans and critical business trips.

“This uncertainty alone threatens our industry's long-term growth,” Paradis stated. “We urge the federal government to take swift action in support of a resolution that will safeguard travel plans and protect our sector's stability.”

ACTA noted that it represents small to large-sized businesses across the country.

“For these businesses, a labour disruption at Air Canada would mean significant financial strain and uncertainty, threatening their ability to operate effectively and meet their clients' needs,” the association said. “It is essential that there be no disruption, as these businesses rely on a stable travel environment to thrive and ensure that Canadians can travel safely and with confidence.”

This is a developing story.

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