Air Canada and Pilots Union Reach Tentative Deal to Prevent Shutdown

OTTAWA, Ontario — Air Canada and its pilots’ union have reached an agreement that is expected to avert a potential shutdown of the country’s largest airline.

The two sides engaged in negotiations that led to a tentative four-year collective agreement, according to a statement released by the airline on Sunday.

This agreement acknowledges the contributions of pilots for both Air Canada and its subsidiary, Air Canada Rouge, while also establishing a new framework for the airline’s future growth. The details of the agreement will remain confidential until it is ratified by union members and approved by the airline’s board in the coming month.

The Air Line Pilots Association revealed that the Air Canada Master Executive Council had voted to endorse the tentative agreement on behalf of over 5,400 pilots. Following a review and approval from the majority of union members, the deal could potentially generate an estimated $1.9 billion in earnings for pilots throughout the term of the agreement, as per the union’s statement.

“The journey to this agreement has been long and challenging, but the unwavering engagement and resolve of our pilots were instrumental in achieving this contract,” said Charlene Hudy, chair of the executive council. “After weeks of continuous negotiations, significant advancements were made on crucial issues like compensation, retirement benefits, and work regulations.”

Federal Labor Minister Steven MacKinnon confirmed the agreement and praised both the airline and the union for their efforts.

“Thanks to the dedication of all parties involved and the assistance of federal mediators, disruptions that could impact Canadians have been avoided,” MacKinnon stated. “Negotiated agreements are always preferable and ultimately produce positive outcomes for both companies and their employees.”

Negotiations between Air Canada and its pilots have been ongoing for over a year. The pilots have requested wages that align with those of their counterparts in the United States, while the airline has reported record profits but has been offering below-market salaries, according to union representatives.

Without the new deal, either side could have issued a 72-hour notice of a potential strike or lockout starting Sunday. Such a notice would have initiated Air Canada’s three-day wind down plan and set the stage for a complete work stoppage as of September 18.

An Air Canada spokesperson, Christophe Hennebelle, had previously mentioned that the airline was dedicated to reaching an agreement but could not accede to the union’s wage requests.

While the airline had not sought federal intervention, they alerted that the government should be ready to assist in preventing significant disruptions from a potential shutdown of an airline that serves over 110,000 passengers every day.

Business representatives had urged the federal government to step in during the negotiation process. However, MacKinnon expressed confidence that both sides should be able to reach a collective agreement without external influence.

In August, the government took action by asking the country’s industrial relations board to implement a back-to-work order to resolve a railway shutdown.

Leaders from various business sectors, including the Canadian Chamber of Commerce and the Business Council of Canada, gathered in Ottawa earlier in the week to advocate for measures, including binding arbitration, to prevent disruptions due to a possible airline service interruption.

NDP Leader Jagmeet Singh stated on Thursday that his party would oppose any attempts to enforce the pilots to return to work.

“If there are any proposals regarding back-to-work legislation, we will be against those,” he said.