(Montreal) Factors including public opinion and politics pushed Air Canada toward an agreement that allowed pilots to obtain significant pay increases, according to experts.
The tentative agreement includes a 42 percent pay increase over four years, according to a source who was not authorized to speak publicly on the matter.
On Sunday, the country’s largest airline and the union representing more than 5,200 pilots announced they had reached a tentative agreement, averting a strike that would have grounded planes and affected some 110,000 passengers a day.
On Friday, Prime Minister Justin Trudeau made it clear that the two sides would have to negotiate an agreement themselves.
Mr. Trudeau had said the government would not intervene to resolve the impasse. The government intervened in the railway workers’ work stoppage last month and in the WestJet mechanics’ strike over the Canada Day long weekend. The prime minister had said the government respects the right to strike and would only intervene if it became clear that no negotiated agreement was possible.
The Trudeau government is unlikely to consider back-to-work legislation after the New Democratic Party tore up its deal with the Liberals, said John Gradek, who teaches aviation management at McGill University.
Conservative Leader Pierre Poilievre, whose party has traditionally taken a more pro-business line, also said last week that he would not “support the idea of avoiding these negotiations.”
“We support the pilots and their right to fight for a fair deal and good wages,” he said.
Backed by business leaders, Air Canada President and CEO Michael Rousseau asked Ottawa on Thursday to intervene preemptively by resorting to binding arbitration “to intervene if negotiations fail before travel disruptions begin.”
The demand may have fallen flat. Gradek believes public frustration over thousands of cancelled flights may have been directed at Air Canada rather than Ottawa, prompting the carrier to agree to a deal that offered “unheard of” gains for employees.
“It was really a total collapse of Air Canada’s negotiating position,” he said.
“In my view, public opinion has essentially put pressure on the federal cabinet, including the prime minister, to stay away from the negotiations,” Gradek continued.
“Air Canada ran out of support as the week went on and by Friday night and Saturday morning it was just a matter of trying to get a deal done and get it accepted by [l’association des pilotes d’Air Canada] “.
Generalized increases
Pilots are expected to vote on the four-year deal in the coming weeks.
Last year, pilots at Delta Air Lines, United Airlines and American Airlines reached agreements that provided for four-year pay increases ranging from 34 percent to 40 percent, increasing pressure on other carriers to boost wages.
After more than a year of negotiations, Air Canada presented an offer last month centered on a 30% wage increase over four years.
But the final deal, if union members approve it, grants a 26% raise in the first year, retroactive to September 2023, the unnamed source said. Three 4% pay increases will follow between 2024 and 2026.
Air Canada said Sunday that the interim contract “recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline.”
The union released a statement saying that, if ratified, the deal would generate approximately $1.9 billion in additional value for Air Canada pilots over the four years of the agreement.