Air Canada Reaches Tentative Agreement with Pilots Union #

Air Canada has reached a tentative agreement with its pilots union on a new four-year collective agreement, averting a potential strike or lockout. The deal was reached just before the airline was set to begin canceling flights and shutting down operations.

With this agreement, Air Canada and Air Canada Rouge will continue their normal operations, which include nearly 670 flights per day carrying about 110,000 passengers and freight.

The terms of the new agreement will remain confidential pending a ratification vote by union members, expected to be completed within the next month. The union has stated that the deal represents an additional C$1.9 billion ($1.40 billion) in value for members over its four-year term, a 46% increase over the previous contract that expired in September 2023.

The negotiation process, which lasted for 15 months, focused on several key issues including compensation, retirement, and work rules. The pilots had been seeking wage rates that would narrow the pay gap with their counterparts at major U.S. carriers.

The Canadian government did not intervene in this dispute, unlike its recent action in a strike involving two major rail companies. Air Canada had previously offered a wage increase of more than 30%, along with improved pension and health benefits, but the union had deemed this insufficient.

The new agreement comes in the context of recent contract negotiations in the U.S. airline industry, where pilots have secured significant pay raises amid a travel boom and staffing shortages. The pay gap between U.S. and Canadian pilots had widened considerably since 2013, with some U.S. pilots now earning 92% more than their Canadian counterparts.