Canadians are breathing easier after Air Canada and its pilots union shook hands on a tentative agreement on the weekend. But there’s no guarantee the deal will be approved by the union’s rank and file.
A source with knowledge of the situation told Open Jaw a lot of questions are being asked about specific parts of the deal, including what kind of improvements less experienced pilots will see. It’s expected that pilots will take a month or so to review the terms of the tentative deal before a vote is taken.
It’s worth noting that Air Transat flight attendants earlier this year twice rejected tentative deals with the company. If that happens with Air Canada’s pilots, the two sides would have to return to the bargaining table, and both consumers and advisors would be faced with more uncertainty.
The Air Line Pilot’s Association said the four-year deal has a value of $1.9 billion and contains pay hikes of 41.7%. The Globe and Mail said pilots would receive a 26% pay raise that’s retroactive to last year, when the previous contract ran out. They also would receive 4% pay hikes in the next three years.
The tentative contract replaces one reached 10 years ago that provided raises of 2% a year.
“While it has been an exceptionally long road to this agreement, the consistent engagement and unified determination of our pilots have been the catalyst for achieving this contract,” First Officer Charlene Hudy, chair of the Air Canada ALPA Master Executive Council, said in a statement. “After several consecutive weeks of intense round-the-clock negotiations, progress was made on several key issues including compensation, retirement, and work rules.
WestJet pilots represented by ALPA were given a four-year contract last year with a 24% pay hike, while Delta Air Lines last year gave its pilot a four-year deal with a 34% pay hike.
“We said we would stay engaged to reach a deal until the last minute and we are happy to have reached a tentative agreement that recognizes the contributions and professionalism of our pilots,” Air Canada said in a statement on 15SEP. “We want to thank the Minister of Labour and the whole Federal mediation and conciliation service for their support to both parties throughout the process. We also thank our customers for their patience and understanding.”
The tentative pilot’s contract is retroactive to September of 2023 and will run until September, 2027. That should buy AC management a good two or two-and-a-half years of time when it doesn’t have to worry about pilots.
Of course, there are other unions at Air Canada, and no doubt they’ll try to aim for similar compensation in future negotiations. The Air Canada component of CUPE, which represents more than 10,000 flight attendants for Air Canada and Air Canada Rouge, noted in April 2024 that its contract is up for negotiation next year.
CUPE earlier this year said it’s high time Air Canada pays FAs for unpaid labour they’re required to perform. Attendants are currently paid only after the doors close on a plane and aren’t paid for work after the doors reopen upon landing, CUPE said.
Those issues aside, having a tentative deal reached was a huge relief for Canadians and the travelling public. Given that AC flies some 110,000 pax per day on roughly 670 flights, even a partial shutdown would have had severe consequences.
Air Canada on 16SEP announced a “thank you to customers” sale, with 25% off on new bookings with a bonus of 2,500 extra Aeroplan points. The offer will be available until 11:59 pm on 18SEP for eligible trips booked up to 31MAY 2025.
