Air Canada, pilots reach tentative deal, averting work stoppage

MONTREAL — Passengers with plans to fly on Canada’s largest airline can breathe a sigh of relief after Air Canada said Sunday it has reached a tentative agreement with the union representing more than 5,200 of its pilots.

The news of a preliminary deal with the Air Line Pilots Association came shortly after midnight on Sunday when the airline issued a press release just days ahead of a potential work stoppage for Air Canada and Air Canada Rouge.

The tentative deal averts a strike or lockout that could have begun on Wednesday, with flight cancellations expected before then.

“The new agreement recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline,” the carrier said in the statement.

It said Air Canada and Air Canada Rouge will continue to operate as normal while union members vote on the tentative four-year contract.

It said the terms of the new deal will remain confidential pending a ratification vote by the membership, expected to be completed over the next month, and approval by Air Canada’s board of directors.

ALPA issued a statement after midnight Sunday, saying if ratified, the tentative agreement will generate an approximate additional $1.9 billion of value for Air Canada pilots over the course of the agreement.

First Officer Charlene Hudy, chair of the Air Canada ALPA MEC, says in a Sunday statement, “The consistent engagement and unified determination of our pilots have been the catalyst for achieving this contract.” She added that progress was made on several key issues including compensation, retirement, and work rules.

The airline said customers who changed flights originally scheduled from between Sunday and Sept. 23 under its labour disruption plan can change their booking back to their original flight in the same cabin at no cost, providing there is space available.

In the lead-up to Sunday’s deadline to issue notice of a stoppage, the two sides said they remained far apart on the issue of pay, which was central in the negotiations that had stretched for more than a year.

The pilots’ union argued Air Canada continues to post record profits while expecting pilots to accept below-market compensation. It had also said about a quarter of pilots report taking on second jobs, with about 80 per cent of those doing so out of necessity.

The airline had said it has offered salary increases of more than 30 per cent over four years, plus improvements to benefits, and said the union was being inflexible with “unreasonable wage demands.”

Air Canada and numerous business groups had called on the government to intervene in the matter, including the Canadian Federation of Independent Business and the Canadian and U.S. Chambers of Commerce.

“The Government of Canada must take swift action to avoid another labour disruption that negatively impacts cross-border travel and trade, a damaging outcome for both people and businesses,” said the chambers and the Business Council of Canada in a statement Friday.

The union had called for the opposite approach, with Association President Capt. Tim Perry issuing a Friday statement asking Ottawa to respect workers’ collective rights and refrain from getting involved in the bargaining process. He said the government intervention violates the constitutional rights and freedoms of Canadians.

For his part, Prime Minister Justin Trudeau had said it’s up to the two sides to hash out a deal.

Trudeau said Friday the government isn’t just going to step in and fix the issue, something it did promptly after both of Canada’s major railways saw lockouts in August and during a strike by WestJet mechanics on the Canada Day long weekend.

He said the government respects the right to strike and would only intervene if it became clear no negotiated agreement was possible.

Air Canada had already begun preparing for a possible shutdown, saying its cargo service had stopped accepting items such as perishables and indicating a wind-down plan for passenger flights would take effect if a notice of a strike or lockout was issued.

The tentative deal averts travel disruptions for the 670 daily flights on average operated by Air Canada and Air Canada Rouge, and the travel of more than 110,000 passengers.

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