Air Canada announced early Sunday that it has reached a tentative four-year collective agreement with its pilots union, effectively averting a potential strike or lockout. The agreement was finalized just in time, as the airline had been preparing to cancel flights over the next three days and potentially halt operations entirely by 12:01 a.m. EDT on Wednesday, Sept. 18.
The agreement with the Air Line Pilots Association (ALPA), which represents over 5,200 pilots, will ensure that Air Canada and its subsidiary, Air Canada Rouge—operating nearly 670 flights daily and serving approximately 110,000 passengers—will continue normal operations. The terms of the new contract will remain confidential until the ALPA members complete a ratification vote expected within the next month.
According to the ALPA, the new deal will provide an additional C$1.9 billion (approximately USD 1.4 billion) in value over its four-year term, marking a 46% increase over the previous contract that expired in September 2023. Key issues addressed in the agreement include compensation, retirement benefits, and work rules, as noted by First Officer Charlene Hudy, chair of the Air Canada ALPA master executive council.
The negotiations, which have been ongoing for 15 months, were driven by pilots’ demands for wage rates that would bring them closer to the compensation of their counterparts at major U.S. carriers like United Airlines. In recent years, U.S. pilots have secured substantial pay raises amid a surge in travel and staffing shortages, with United pilots receiving increases of about 42%, resulting in a significant pay gap compared to Air Canada pilots.
Labour Minister Steve MacKinnon praised the efforts of the negotiating parties and federal mediators for preventing travel disruptions, while Prime Minister Justin Trudeau noted that the Canadian government would not intervene as it did in last month’s resolution of a strike involving Canadian Pacific Kansas City and Canadian National Railway.
Earlier, Air Canada had proposed a wage increase of more than 30% along with enhanced pension and health benefits. However, the union had deemed the proposal insufficient, given that the current rates and provisions were negotiated in 2014.
The new contract aims to address these concerns and align Air Canada’s pilot compensation more closely with industry standards, reducing the previously significant pay disparity.
