Air Canada and top Canadian business leaders are asking the Trudeau government to intervene. But those pleas appear to be falling on deaf ears, as both the Liberal government and Conservative Leader Pierre Poilievre say it’s up to the pilot’s union and AC management to work out a deal.
Meanwhile, a source close to the situation tells Open Jaw that an “unusual number” of pilots have called in sick today. Stats at flightaware.com as of 3:30 pm ET showed eight cancelled AC flights and 81 delays (roughly 15% of flights). The YYZ site showed several early Air Canada domestic flights were delayed by two hours or more.
Air Canada pilot Jesse Jantzi, vice chair of the Air Canada Master Executive Council at the Air Line Pilots Association, said there was no concerted action by the union to have pilots call in sick or take any other kind of action. An Air Canada spokesman said he didn't know of anything unusual in terms of sick calls.
TTI’s Rocky Racco told Open Jaw he believes the government might not step in to try to stop a lockout or strike, but that Ottawa will take action if there’s a strike.
“If there is a strike the feds will have to step in,” Racco said. “They will have to.”
“It won’t last more than a day is my prediction because the hardship will be unbearable. The government will be forced to step in," he said. “Even then, it will take a few weeks following such a disruption, with aircraft and crew grounded in various locations, for operations to streamline.”
“Shutting down [Air Canada] is big news because of its dominant size,” W. Steven Tufts, a professor at York University, told the Globe and Mail on 12SEP. “My feeling is that the government will intervene with any work stoppage involving the pilots, if not pre-emptively, then after a day or two at most.”
Air Canada says it hopes Ottawa will intervene if it appears planes will be grounded.
“If a negotiated settlement is not reached and a work stoppage is unavoidable … Air Canada would look to the (federal) government to intervene, as it has in recent labour disputes, before Canadian travellers and other stakeholders experience such a disruption,” AC spokesman Peter Fitzpatrick told the Toronto Star.
Fitzpatrick said management has been bargaining “in good faith” for 15 months and hasn’t been able to reach a deal with pilots.
A pilot’s strike could take place as early as 18SEP. But Air Canada earlier this week said it would have to begin an “orderly shutdown” by Sunday if there’s no deal. Some flights could be cancelled as early as 13SEP.
The Air Line Pilots Association said it will be setting up its strike headquarters in Toronto on 12SEP as the clock continues to tick.
In an open letter signed by dozens of top Canadian business groups and sent 11SEP to Labour Minister Steve MacKinnon and other members of the Trudeau cabinet, leaders said they have deep concerns about the possibility of a strike.
“The potential for a labour disruption is alarming, given the wide-reaching implications it would have on Canadians, the nation’s economy, supply chains, and our global reputation,” said the group, which includes ACTA, the Alberta Chambers of Commerce, the BC Construction Association, the Atlantic Chamber of Commerce, the Quebec Business Women’s Network and dozens of other organizations.
“Air Canada provides a crucial service, carrying up to 150,000 passengers each day. Be it a business trip, seeking medical treatment, visiting family and friends, or a long-awaited vacation, reliable long-range transportation is non-negotiable for Canadian travellers,” the business letter said. “However, the impact of a strike would extend far beyond passenger travel for both urban and rural Canadians—it would significantly disrupt Canada’s supply chain.
“Air Canada’s cargo network is important for the import and export of critical, time-sensitive goods such as vaccines and medical supplies, agriculture and perishable food products, and parts and machinery for small and medium sized Canadian manufacturers,” biz leaders said.
Hospitality Newfoundland and Labrador CEO Craig Foley told vocm.com that would-be visitors started cancelling trips and excursions at the first hints of trouble from Air Canada.
“As an island, access is our biggest challenge, particularly in tourism and hospitality,” he said. “So if we can’t get people here, it’s very hard to operate as businesses, and with those cancellations, it’s really having an impact.”
Air Canada has said it will try to get as many pax on other airlines as it can if a job action takes place. But experts say there's only so much AC's rivals can do
"Air Canada’s mainline and Rouge operation is the largest in the country," Kokonis told Open Jaw. "The other challenges is that Air Canada now flies to every continent, with twice the number of pilots they had back in 1998 when there was a pilots’ strike."
Too Many Strikes
“The timing of this potential strike could not be worse,” the leaders wrote. “The dust has not yet settled on the labour disputes that paralyzed Canada’s two major rail networks, causing yet untold damage to not only our national economy, but also our global reputation. If Canadian businesses are unable to deliver our goods to market on time, our international partners will begin to seek permanent alternatives.”
“The government must recognize the far-reaching implications of this dispute and treat it with the utmost urgency,” ACTA told Open Jaw in a statement. “Time is of the essence – every day of uncertainty causes more anxiety for travellers, and places increasing strain on our industry.”
Will the Government Step In?
So far, Trudeau and other political leaders in Ottawa aren’t persuaded.
“There is absolutely no reason these parties cannot come to a negotiated agreement, and my position is they should do the work necessary to relieve Canadians of the uncertainty, the considerable uncertainty, that this causes with respect to travel, with respect to economic issues, and to bear down, to knuckle down, and get a deal,” Labour Minister Steve McKinnon said on Parliament Hill on 11SEP.
“I want to reiterate that there is no reason for these parties not to come to an agreement.”
Conservative Leader Pierre Poilievre joined the chorus, saying he thinks Air Canada should “negotiate in good faith with the pilots.”
“We’re not going to support preempting those negotiations,” he said. “We stand with the pilots and their right to fight for a fair deal, good wages.”
Stepping Up the Pressure
“A work stoppage will lead to thousands of temporary layoffs for airline employees, which will negatively impact the air transportation ecosystem across the country,” leaders said in their 11SEP letter to Ottawa. “It will reinforce a growing perception that Canada is not a reliable trading partner.
“Should the parties not come to a negotiated agreement, the federal government must prioritize Canadians and be prepared to act in advance to prevent yet another damaging disruption by referring the matter to binding arbitration where a neutral arbitrator can resolve any outstanding issues. Swift action will ensure that a fair and sustainable resolution can be achieved, ensuring the stability and continuity of operations that are so vital to Canada’s prosperity.”
