Negotiations between Air Canada and its pilots break down

Tensions are escalating between Air Canada pilots and the company, with no sign of major progress in negotiations, as a strike or lockout could occur within days.

After calling for binding arbitration in an open letter, numerous business groups, including the Canadian Chamber of Commerce, are scheduled to hold an event in Ottawa on Thursday to urge the federal government to intervene in the matter.

Air Canada said earlier this week that a work stoppage is increasingly likely as negotiations remain far from conclusive.

Unless an agreement is reached, either side could serve a 72-hour notice of strike or lockout as early as Sunday, which could lead to a full work stoppage as early as September 18.

Air Canada said Monday that a deal could still be reached if the International Air Line Pilots Association moderates its wage demands that “well exceed the average wage increase in Canada.”

For its part, the union has argued that it is the company’s greed that is holding up negotiations, as Air Canada continues to post record profits while expecting its pilots to accept below-market pay.

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