Air Canada Pilots Ratify New Labor Deal

By Allison Lampert and Rajesh Kumar Singh
MONTREAL/CHICAGO (Reuters) – Air Canada pilots have voted to ratify a new four-year labor deal with the country's largest carrier, the union announced on Thursday. This agreement eliminates the risk of work stoppages, although some members have expressed concerns about pay for entry-level aviators.

The Air Line Pilots Association (ALPA), representing the workers, reported that the deal received 67% of votes in favor. The contract is retroactive from September 30, 2023, until September 29, 2027. It includes a cumulative rate increase of about 42%, providing approximately C$1.9 billion in additional value, according to an executive summary seen by Reuters.

Charlene Hudy, chair of the Air Canada ALPA Master Executive Council, stated, "We look forward to working under these improved pay rates and working conditions."

However, the wage increases are not uniform across all categories. For example, a newly hired first officer flying a 737 MAX jet will see just a C$3.36 increase in 2024 compared to 2023, while their wages will ultimately rise by 62% over the duration of the deal. In contrast, newly hired first officers at U.S. carrier United Airlines would earn 82% more in Canadian dollars than those at Air Canada.

The pilots had been pushing for wage increases to lessen the pay gap with their American counterparts during the 15-month negotiation period. In September, Air Canada narrowly avoided a strike by reaching a last-minute agreement with the union representing over 5,200 pilots. The tentative agreement faced criticism on social media and within the union, with one committee member resigning due to a "fundamental disagreement" with the union's direction.

In a post on social media platform X, Air Canada welcomed the vote. While the airline has resolved its dispute with pilots, negotiations with flight attendants are set to begin early next year. The cabin crew's union has been advocating for significant changes regarding treatment and compensation within the airline industry, particularly addressing the issue of "free work" and ensuring payment during boarding, deboarding, and wait times at the airport.