Air Canada pilot strike averted as tentative deal reached with union

Air Canada and the union representing more than 5,200 pilots have reached a last-minute tentative deal in their labour dispute, averting a strike that could have disrupted travel plans for thousands of passengers.

In a statement on Sunday, Air Canada said that a new tentative, four-year agreement reached with the Air Line Pilots Association (ALPA) will be put to a ratification vote, which is expected to be completed over the next month.

Until then, flights “will continue to operate as normal,” Air Canada said.

“The new agreement recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline,” the carrier added.

News of the preliminary deal came shortly after midnight on Sunday when Air Canada or the ALPA were due to issue a 72-hour strike or lockout notice if no settlement was reached.

ALPA said the four-year deal provides pay raises, improves work rules and retirement benefits.

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The terms of the preliminary agreement have not been publicly shared, but a source familiar with the details of the tentative deal tells Global News, pilots will get an approximately 41.7 per cent cumulative pay increase over four years.

The pay raise will back date to Sept. 30, 2023, with an average 26 per cent increase, followed by four per cent increments every year until 2026, the source said.

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If the tentative agreement is ratified, ALPA said it will generate approximately an additional $1.9 billion of value for Air Canada pilots over four years.

“While it has been an exceptionally long road to this agreement, the consistent engagement and unified determination of our pilots have been the catalyst for achieving this contract,” first officer Charlene Hudy, chair of the Air Canada ALPA master executive council, said in a statement Sunday.

“This agreement, if ratified by the pilot group, would officially put an end to our outdated and stale decade-old, 10-year framework.”

In the lead-up to Sunday’s deadline to issue notice of a stoppage, the two sides said they remained far apart on the issue of pay, which was central in the negotiations that had stretched for more than a year.

And in preparation for the shutdown, Air Canada had started on Friday to limit certain types of cargo shipments, such as perishables, and adjust some aircraft flying schedules. No flights were cancelled, however.

The airline said customers who changed flights originally scheduled from between Sunday and Sept. 23 under its labour disruption plan can change their booking back to their original flight in the same cabin at no cost, providing there is space available.

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Federal Labour Minister Steve applauded both sides for reaching the tentative deal and averting the work stoppage.

“Thanks to the hard work of the parties and federal mediators, disruptions have been prevented for Canadians,” he said in a statement Sunday shared on X, formerly known as Twitter.

“I wish to salute the efforts of Air Canada and its pilots, who approached the discussions with seriousness and a resolve to get a deal.” MacKinnon said.

Earlier in the week, the minister wouldn’t say if he intended to intervene in the dispute similar to his decision to request binding arbitration and return-to-work orders to resolve a rail shutdown late last month.

“Negotiated agreements are always the best way forward and yield positive results for companies and workers,” he said Sunday.

Air Canada had urged the federal government to be ready to intervene if the talks with the pilots’ union would fail.

Meanwhile, the union did not want the government to intervene in the collective bargaining process, saying that doing so “violates the constitutional rights and freedoms of Canadians.”

Speaking to reporters in Montreal on Friday, Prime Minister Justin Trudeau said that the onus is on Air Canada and the pilots’ union to reach a deal — and not on the federal government.

The tentative deal averts travel disruptions for the 670 daily flights on average operated by Air Canada and Air Canada Rouge, and the travel of more than 110,000 passengers.

— with files from Global News’ Sean O’Shea and The Canadian Press.