In a significant development for Canada’s travel industry, Air Canada and its pilots’ union reached a tentative agreement early Sunday, averting a strike that had the potential to cripple the airline’s operations and leave thousands of passengers stranded. The new four-year collective agreement brings a sense of relief to the airline and its passengers as they prepare for the upcoming travel season.
Without this agreement, Air Canada was preparing to implement a series of flight cancellations beginning on Monday, with a complete shutdown of its operations slated for early Wednesday morning. The potential strike would have halted nearly 670 daily flights, affecting more than 110,000 passengers, as well as vital cargo services.
The agreement, reached after weeks of around-the-clock discussions, involves the Air Line Pilots Association (ALPA), which represents over 5,200 Air Canada pilots. While the terms of the deal remain confidential, they are expected to be put to a ratification vote by the union members over the next month.
According to ALPA, the new deal is valued at an additional C$1.9 billion (US$1.4 billion) over its four-year term, marking a 46% increase from the previous contract. This increase reflects substantial improvements in areas such as pilot wages, retirement benefits, and working conditions—key issues that had been the focus of the union’s demands throughout the negotiations.
Charlene Hudy, First Officer and chair of the Air Canada ALPA master executive council, noted that while the negotiation process was difficult, it ultimately yielded meaningful progress for pilots. “After several consecutive weeks of intense round-the-clock negotiations, progress was made on several key issues including compensation, retirement, and work rules,” she stated.
The push for higher wages was largely motivated by the considerable pay gap between Air Canada pilots and their counterparts at major U.S. airlines, particularly United Airlines. Over the past two years, U.S. pilots have secured significant pay raises as the industry rebounds from pandemic-induced challenges. United’s pilots, for example, received a 42% wage increase in their most recent contract, with some now earning 92% more than their Canadian counterparts—a stark contrast to 2013, when the pay difference between the two groups was just 3%.
Prime Minister Justin Trudeau, who had previously stepped in to resolve labor disputes at Canadian rail companies, indicated that the government would not intervene in the airline negotiations. Meanwhile, Labor Minister Steve MacKinnon commended both parties and federal mediators for their efforts in preventing widespread travel disruptions.
Prior to the tentative agreement, Air Canada had offered a wage increase of more than 30%, as well as improved pension and health benefits. However, the union rejected these terms, arguing that they fell short of the expectations of their members, many of whom have been operating under the same pay structure since 2014.
As the ratification process moves forward, passengers and industry stakeholders alike will be watching closely. For now, the last-minute deal has provided a reprieve, allowing Canada’s largest airline to continue serving its vast network of
