Air Canada will increase the pay of its more than 5,000 pilots by 30% over the next few years. The news comes as a strike is reportedly looming at the carrier.
The pay boost will begin with an immediate 20% increase, followed by annual increases over a three-year timeline. Pilots with more seniority will reportedly receive larger pay increases.
Significant boosts to pay
According to the Financial Post, Air Canada and the union representing its pilots, the Air Line Pilots Association (ALPA), have been negotiating for over a year. The last contract was a 10-year deal implemented in 2014. Under the agreement, pay was increased by about two percent every year. However, since last year, the pilots have not received a raise.
Under Air Canada’s most recent offer, a 10-year captain flying one of its widebody aircraft, such as the Boeing 777, with an annual salary of more than $350,000 could see a bump of over $100,000. The airline’s offer also reportedly includes pension improvements and health benefits.
Air Canada’s pilots are compensated less than half of what its competitors’ pilots receive, according to ALPA. Current discussions on when the offer may be implemented are unknown as people familiar with the development remain private.
End of federal conciliation
Last week, more than 2,000 pilots held an informational picket in Toronto, Vancouver, Montreal, and Winnipeg to mark the end of their federal conciliation period. According to ALPA, the pilots will have the legal right to strike after issuing a 72-hour strike notice once the 21-day cooling-off period concludes.
Air Canada ALPA Master Executive Council (MEC) Chair Charlene Hudy explained how the union hoped the airline would avoid a strike by reaching an agreement.
“It is nearly a year since our stale and outdated contract expired. We want to reach an agreement with Air Canada to avert a strike, and although we made some progress in conciliation, management continues to force us closer to a strike position by not listening to our most pressing needs at the negotiating table regarding fair compensation, respectable retirement benefits, and quality-of-life improvements.”
An overwhelming majority of the pilots voted in favor of a strike authorization ballot last week. 98% of participating union members and 98% of voters elected the move should it be necessary to achieve a new collective bargaining agreement with the carrier.
Hudy mentioned that more than 75% of Air Canada’s pilots need an additional job, according to the Financial Post.
“One-quarter of our pilots have a second job, with almost 80 per cent of those needing the job out of necessity,” she said. “We are trying to change that.”
“We are still not seeing significant movement”
A meeting between the two parties is reportedly expected to occur later this week. It comes after Hudy said that negotiations had “completely stalled” last week.
“Flight disruptions are never an ideal outcome for our passengers or any pilot; that’s why our primary goal is to reach an agreement and not go on strike,” Hudy stated. “However, we are still not seeing the significant movement that we need to see from Air Canada, especially now that time is of the essence, and we are ready to go on strike if necessary.”
Air Canada released a statement regarding the end of the federal conciliation period on August 27th.
“Air Canada’s intention remains to reach a negotiated settlement with its pilots, one that recognizes their professionalism and contributions to the airline. During the talks, there has been significant progress and the three-week cooling off period gives the parties more than sufficient time to address any outstanding issues. Air Canada is fully committed to bargaining meaningfully throughout the period.