Air Canada announced today that if contract negotiations with its pilots’ union are unsuccessful, it will be essential to seek a government mandate for binding arbitration.
The measure is intended to prevent significant disruptions to air travel, which could affect the schedules of more than 110,000 daily passengers and hamper the timely delivery of critical cargo shipments.
Contract negotiations between the company and the Airline Pilots Association (ALPA)representing 5,200 Air Canada and Air Canada Rouge pilots, have lasted more than 100 days. Tentative agreement has been reached on 70% of the more than 1,000 amendments proposed by ALPA.
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Air Canada has proposed unprecedented wage increases; however, the union has rejected these offers, citing wage levels in the United States as a benchmark. Talks have reached an impasse, and both sides could face a legal strike or lockout as early as September 18, 2024.
The two sides have met for a total of 100 days over the past 15 months, during which time they have negotiated 1,110 issues. Over this period, they have provisionally agreed to revise more than 70% of the articles to improve and modernize their collective agreement.
Notable changes include a 30% pay increase, a record in Canada, substantial improvements to defined benefit pension and health care plans for pilots, better work-life balance provisions, and scheduling adjustments that allow pilots more time at home. In return, Air Canada has not asked for any concessions.
Air Canada is not currently calling for immediate action. However, the airline says the Government of Canada should be prepared to use its authority to implement binding interest arbitration under Section 107 of the Canada Labour Code if negotiations fail to produce an agreement before the start of a work stoppage.
Such a disruption, together with the systematic cessation of operations, would have an immediate impact on the travel plans of 110,000 people daily and would stop the transport of large quantities of essential air cargo.
The airline points to recent government interventions in labour disputes within the rail, port and airline sectors in Canada as a relevant precedent. In addition, the Code is intended to maintain industrial peace in situations where parties reach an impasse following significant collective bargaining efforts.
