Air Canada released on Sunday, September 15, that it had secured a tentative four-year collective agreement with its pilots' union, avoiding an impending strike or lockout. This last-minute deal was reached just before the airline was set to start cancelling flights, with a complete shutdown planned for 12:01 a.m. EDT on Wednesday, September 18.
With the agreement in place, Air Canada and its subsidiary Air Canada Rouge, which together operate around 670 flights per day and transport approximately 110,000 passengers daily, will continue their operations as scheduled. Negotiations had been ongoing for 15 months, with pilots pushing for pay increases to reduce the widening wage gap between them and pilots at major U.S. carriers like United Airlines.
Air Canada had previously offered a salary increase exceeding 30%, along with improvements to pension and healthcare benefits. However, the union argued that this offer did not sufficiently address the concerns of pilots, who have been working under terms established in a 2014 agreement.
In the United States, pilots have recently secured significant wage increases due to a surge in travel demand and workforce shortages. United Airlines, for instance, signed a deal that included pay raises of about 42%. This has led to a significant disparity, with some United pilots now earning up to 92% more than their Air Canada counterparts, a stark contrast to the 3% gap that existed in 2013.
This tentative agreement will keep Air Canada's flights running while pilots await final approval of the contract.
