Air Canada and its low-cost subsidiary, Air Canada Rouge, together operate nearly 670 flights per day. Unless they reach a settlement with the Air Line Pilots Association, the shutdown could affect 110,000 passengers daily.
The airline's pilots have been pushing to close the salary gap with their US peers, who signed lucrative labour deals in 2023 amid pilot shortages and strong travel demand.
"Air Canada should stop threatening to disrupt air travel and come to the bargaining table with serious proposals to keep the flagship Canadian carrier competitive in the global aviation market," said Charlene Hudy, who heads the local union representing the airline's pilots.
Talks between ALPA, which represents more than 5,200 pilots at the carrier, are continuing, but both parties remain far apart, the company said.
"Air Canada believes there is still time to reach an agreement with our pilot group, provided ALPA moderates its wage demands which far exceed average Canadian wage increases," CEO Michael Rousseau said. ALPA pilots have previously said the current pay rates at US rival Delta Air Lines are up to 45% higher than the Canadian carrier's hourly pay rates.
On August 27, the union and the airline entered a mandated three-week cooling-off period, during which the union cannot go on strike. Air Canada anticipates it would take seven to 10 days for normal operations to resume, once the complete shutdown is in place. The company said it is in talks with other airlines to accommodate its stranded passengers in the event of flight cancellations. "Our government firmly believes in the collective bargaining process and Canadians are counting on the parties to get a deal," a statement from Canadian Labour Minister Steven MacKinnon's office said.
“Air Canada should stop threatening to disrupt air travel and come to the bargaining table with serious proposals,” said Charlene Hudy, head of the union’s Air Canada contingent, in a statement. The airline said some services such as holiday packages could see a wind down as early as Friday, while it has already started limiting acceptance of some goods in its cargo division.
If all flights are suspended in a work action, Air Canada says resuming normal operations will take as much as seven to 10 days. Air Canada Express flights will continue to operate during a strike, the airline said.
The airline is allowing customers with bookings between September 15 and 23 to make changes if they want to at no cost, or to receive a credit for future travel. It says the policy will be expanded as warranted. However, passengers will not be eligible for extra compensation, as under the rules labour disruptions are considered outside of the airline’s control.
On X, Alberta Premier Danielle Smith called on the federal government to step in and stop the strike or lockout before it starts.
“The looming Air Canada pilot strike threatens to cripple our economy and there are no signs of progress. The impact would be immediate. Businesses, tourism, and essential travel will take a massive hit,” she said. “The federal government must take this issue seriously and push for a swift resolution before the impacts become irreversible.”
The government stepped in last month to send railway workers at both CN and CPKC, who move a combined $1bn in freight every day, back to the job after a lockout at both firms that was only 16 hours old. The Teamsters Rail Conference, who represented the workers, has appealed that decision in court and denounced the Liberals for interfering in the bargaining process. The Liberals also stepped in earlier this summer, sending WestJet mechanics to binding arbitration to avoid a labour disruption.
Hartley Witten, a spokesperson for Labour Minister Steven MacKinnon, said the government wants to see this issue resolved at the bargaining table.
Air Canada CEO Rousseau said the union’s wage demands are too high and far exceed what other employees in Canada have demanded. He said the company was going public with its plans to alert the public and the government.
“We are publicising our plans to give the more than 110,000 people who travel with us each day greater certainty and the opportunity to reduce the risk of being stranded by using our goodwill policy,” he said. “We are also alerting the government of Canada to the potential disruption’s impact upon Canadians.”
Air Canada said pilots who reach the status of captain, which can happen between three and 15 years, can make between $215,075 and $351,958 per year, while also getting generous benefits. The union contends those numbers apply to only a narrow number of the airline’s pilots with most making much less after years of training and experience.
Charlene Hudy, a first officer and the senior union member representing Air Canada pilots, said Air Canada’s rhetoric on the potential lockout has been unhelpful. “Air Canada can afford to match recent wage increases in the US, where pilots are now paid as much as 40% more than Air Canada pilots. “Air Canada continues to post record profits and reward its executives handsomely, while expecting pilots to accept below market compensation. Now, because of their corporate greed, Air Canada is preparing to disrupt flights and inconvenience passengers,” she said. “Air Canada should get back to the bargaining table — and get serious about negotiating a contract that reflects the unique contributions of its pilots.”
