Air Canada Pilot Strike Anticipated on September 15 with Negotiations Stalled

With no sign of reaching a deal yet, the looming strike by 5,400 pilots would potentially ground 1,000 flights and impact 120,000 passengers each day.

An Air Canada pilot strike could start as early as September 15 unless a deal is reached between the airline and the Air Line Pilots Association (ALPA) before next week. The airline is currently preparing for a gradual shutdown of flights starting Sunday, ahead of the pilots’ total walkout commencing on September 18.

Negotiations between Air Canada and ALPA have been ongoing for over a year and have now stalled. 

The 5,400 Air Canada pilots represented by ALPA Canada, whose contracts were last ratified in 2014, demand higher wages and improved health and pension benefits. They have not received a raise since 2023.

Discussions between Air Canada and ALPA began in June 2023, with a federal conciliator overseeing them. However, no agreement was reached, and the union escalated the process in hopes of fulfilling the pilots’ demands.

Negotiations moved into private mediation in January 2024 and continued until June. ALPA then initiated a strike vote in August, as neither side could agree on a new collective agreement.

ALPA and Air Canada entered a 21-day cooling-off period that started on August 27 ahead of the anticipated pilot strike, a period mandated by Canadian law.

Nevertheless, Air Canada CEO Michael Rousseau remains optimistic about reaching a deal soon and stated that both parties had already reached an agreement on several key issues.

A North American wave of pressure

The airline industry continues to see pressure as pilots push for better pay and working conditions across North America. Air Canada pilots have been requesting wage increases to narrow the salary gap with their better-paid U.S. peers.

Over the past year and a half, new contracts have been signed between the four biggest U.S. airlines and their pilots. In 2023, U.S. pilots secured new record contracts due to pilot shortages and increased travel demands. Some are now earning roughly double the salary of Air Canada pilots. 

Moreover, Air Canada’s competitor, WestJet, signed a similar agreement with its pilots in 2023. The new deal included a 24% increase in compensation over four years.

Air Canada spokesperson Peter Fitzpatrick stressed the airline’s willingness to explore solutions to keep its pilots as the best-paid in Canada.

The majority of Air Canada pilots vote in favour of a strike

ALPA initiated a pilot strike vote in August, which resulted in an overwhelming 98% pro-strike outcome.

Charlene Hudy, chair of the Air Canada ALPA Master Executive Council, told Global News, “Air Canada pilots sent an overwhelming message that they are resolved and unified and willing to do what it takes to get the contract that they have earned.”

The previous, expired contract was “stale” and “outdated,” according to Hudy.

In a statement, Air Canada acknowledged the pilot strike vote and called it a “normal step in the negotiation process.” It also noted that the vote would not necessarily disrupt its flights.

“Air Canada remains committed to the bargaining process and will continue to work towards a fair and equitable collective agreement with ALPA that recognizes the contributions of our pilots and supports the competitiveness and long-term growth of our company,” the statement added.

Air Canada offers its pilots a 30% wage increase

On August 27, Air Canada issued an update regarding ongoing contract negotiations with ALPA Canada. With the pilot strike deadline approaching, the airline offered to increase pilot wages by about 30% over the next three years, in addition to improving health and pension benefits. 

According to the Financial Post, Air Canada pilots would receive at least a 20% increase up front, followed by annual raises over a three-year period.

Although Hudy did not comment on these specifics, she emphasized that “one-quarter of our pilots have a second job, with almost 80 percent of those needing the job out of necessity.”

“Compensation has not kept up with inflation, nor the levels of our peer carriers,” she continued.  

Air Canada offers travellers goodwill rebooking

Air Canada announced it would implement a flexible rebooking policy for customers with flights between September 15 and 23, 2024, in light of potential pilot strike disruptions.

Under certain conditions, travellers can rebook their tickets with waived fees, provided they are rescheduled before November 30. They can also choose to cancel their tickets and turn them into travel credits or refunds, depending on the ticket type.

However, certain special services, including the Unaccompanied Minor Program and special baggage services, will be temporarily unavailable.

These policies apply to all Air Canada flights, including Air Canada Rouge and Air Canada Express flights operated by Jazz or PAL Airlines.

Please check Air Canada's dedicated page for updates about the negotiations and the airline’s travel-related policies.

We are following this story closely and will keep you updated. To discuss the potential effects of a pilot strike on your business, please reach out to one of our trade professionals.