Two weeks before a possible strike by its pilots, Air Canada is offering them pay increases totaling 30% over three years. Talks are still at a standstill, according to the International Air Line Pilots Association (ALPA).
If the deal goes through, the roughly 5,400 pilots at the country’s largest airline would get an immediate 20% pay increase, according to a source familiar with the negotiations who is not authorized to speak publicly. There would then be 10% increases spread out over three years.
The Press was able to confirm the information leaked on Wednesday by the Bloomberg agency.
“We fully intend for our pilots to be the highest paid in Canada once the agreement is in effect,” said airline spokesman Christophe Hennebelle, without commenting on the content of what is on the table.
According to our information, the proposal from Air Canada, whose head office is in Montreal, also includes improvements in terms of insurance and pension plans, in particular.
A captain of a large aircraft – such as a Boeing 777 – with more than 10 years of experience could thus add at least $100,000 annually to his annual remuneration, which is around $350,000.
For single-aisle aircraft, which are smaller, the salary increase would vary between $80,000 and $100,000.
Long impasse
Air Canada and ALPA have been negotiating for over a year.
The issue of salaries and scheduling is still a stumbling block between the two parties. The last collective agreement for the airline’s pilots was ratified in 2014 and provided for annual increases of around 2%.
In the absence of progress in negotiations, Air Canada pilots have voted 98% in favour of a strike mandate. A walkout could occur as early as September 18. No indication has been given as to when a strike might be called.
Charlene Hudy, who is responsible for Air Canada pilots at ALPA, declined to comment on the employer’s offer.
“What we can say is that since last week, the negotiations have been at a standstill,” she said in a statement. “We are meeting with the company this week and we hope to see progress on the points [en litige]. »
About a month ago, Air Canada President and CEO Michael Rousseau told financial analysts that the two sides were in agreement on many issues and that he hoped to reach an agreement in the coming weeks. Despite his optimism, the impasse continues.
According to Mme Hudy said talks are also stumbling over the “entry-level salary” of pilots at the airline.
“They live in the largest cities in the country and currently earn a salary that barely allows them to support a family,” she estimates. “A quarter of our pilots have a second job.”
Closing the gap
ALPA is pushing for a pay catch-up, drawing inspiration from what has happened in the United States. South of the border, airline pilots at companies like Delta Air Lines, United Airlines and American Airlines are getting raises of between 34% and 40%.
In May 2023, WestJet pilots also said yes to 24% pay increases over four years.
Given the uncertainty, Air Canada has implemented measures for its customers whose flights are scheduled between September 15 and 23. They will be able to reschedule or cancel their trip.
Read “What to Know in Uncertain Times”
Learn more
-
- 323 million
- Air Canada’s profits for the first six months of the year. This is more than half as much as in the first half of 2023.
Source: Air Canada