The starting wage for Air Canada pilots proposed in the tentative agreement between their union and the airline could be an obstacle to ratification of the deal, according to an expert.
Although the tentative agreement’s four-year, 42 percent cumulative pay increase applies to all crew members — a significant gain after a decade of 2 percent annual raises — many pilots may be unhappy with the deal.
Under their current contract, pilots earn significantly less in their first four years of service, but enjoy a significant pay increase starting in the fifth year.
But according to a copy of the deal summary obtained by The Canadian Press, the proposed agreement announced Sunday would simply reduce the four-year period of lower salary to two years.
The Air Line Pilots Association (ALPA) has also lobbied to completely eliminate the “flat rate” provision, which states that wages remain the same regardless of the type of aircraft flown. Typically, wages increase with the size of the aircraft.
Even in years three and four, wages would be significantly lower than in year five. The hourly rate increases by up to 39 percent in year five, a much larger increase than in any other period, the term sheet states.
Assuming pilots work about 75 hours a month (a common industry benchmark), new recruits currently earn between $55,000 and $77,000 a year. Under the proposed deal, that range would jump to $75,700 to $134,000, compared to nearly $187,000 in year five and more than $367,000 for an experienced captain flying a Boeing 777.
Experts say as many as 2,000 of Air Canada’s roughly 5,200 active pilots could be earning entry-level pay, following a recent hiring surge. Many of the new pilots come on board after long careers at other airlines and aren’t fresh out of flight school.
Slight grumbling
After avoiding a strike this week, some pilots fear that failure to drop pay restrictions could spark a backlash from rank-and-file crews and jeopardize the deal, which is scheduled to go to a vote next month.
An Air Canada captain who said he was not authorized to speak publicly on the matter said his new colleagues had highlighted the criticism, but he hoped they would evaluate the contract in its entirety, from scheduling to pensions and benefits.
Some Canadian carriers offer higher salaries to junior flight officers, but no pension plan, the pilot noted.
Another captain said that if resistance to the deal were to grow, it would stem mainly from the relatively low pay of new hires.
An online pilots’ forum appeared to show signs of frustration within the ranks.
One user posted a message complaining that the tentative deal confirms Air Canada as “the captain’s airline” — rather than an ideal carrier for young aviators. Another said a lack of quality-of-life improvements means “a no vote is expected and even desired.” A third said the contract failed to accommodate the “lower end.”
“I would be a little angry if I had to work until third or fourth year to get some recognition of the differentiation by aircraft type,” said John Gradek, who teaches aviation management at McGill University.
“You continue to discriminate against junior drivers,” he added. “Staff members seem unhappy that this is still happening.”
Air Canada declined to comment on the terms of the contract, but said it recognized the pilots’ contributions.
“We have reached an agreement with the union negotiating committee and the MEC (union executive council) and now they have to present it and explain it to the members before the vote,” said spokesperson Peter Fitzpatrick.
ALPA defends the agreement
Union spokeswoman Camilla Castro declined to comment on the fixed rate issue, but said in an email Monday that “if ratified, this agreement will address key issues including compensation, pensions, work rules, and add approximately $1.9 billion in value to the Air Canada pilots’ agreement.”
Ahead of the ratification vote, ALPA will present the detailed agreement, which was not yet finalized Tuesday night, in a series of roadshows and virtual town hall meetings for members.
Duncan Dee, Air Canada’s former chief operating officer, said the lower starting pay reflects the costs of training pilots when they move to a new type of aircraft.
“If they’re going from a narrowbody to a widebody or from a Boeing to an Airbus, there’s a training element to that change that the company pays for,” he said. “Airlines have a huge training cost when they do that.”
He noted that the 42 per cent pay increase marks a big step up from what WestJet pilots got last year, when they got a 24 per cent pay increase over four years.
South of the border, pilots for Delta Air Lines, United Airlines and American Airlines reached agreements in 2023 that included four-year pay increases ranging from 34% to 40%.
Mr. Dee said it would be “inappropriate” to focus on the early years of a decades-long pilot career with Air Canada.
“We must rightly focus on the whole.”