Air Canada and its pilots' union have reached a tentative agreement, preventing a potential shutdown of the country's largest airline. The four-year collective agreement was negotiated with the Air Line Pilots Association, representing over 5,400 pilots, and announced early Sunday by the airline.
The deal, which is subject to ratification by union members and approval by the airline's board of directors, aims to support company growth while acknowledging the contributions of Air Canada and Air Canada Rouge pilots. Specific terms of the agreement remain confidential until the ratification process is complete. According to the union, the deal is expected to generate an additional $1.9 billion in compensation over the course of the agreement.
Charlene Hudy, chair of the Air Canada Master Executive Council, highlighted the pilots' role in securing the agreement, stating, “After several consecutive weeks of intense round-the-clock negotiations, progress was made on several key issues including compensation, retirement, and work rules.”
The negotiations had been ongoing for more than a year, with pilots seeking wages competitive with their U.S. counterparts. The potential for a strike or lockout loomed as the two sides faced a Sunday deadline, which would have led to a work stoppage affecting over 110,000 daily passengers.
Canada’s labor minister, Steven MacKinnon, commended both parties for reaching an agreement and avoiding major disruptions. “Negotiated agreements are always the best way forward and yield positive results for companies and workers,” he said in a statement.
Business leaders had urged the federal government to intervene if the talks failed, given the significant economic impact of a potential airline shutdown. However, MacKinnon emphasized that both sides were capable of reaching a collective agreement without government intervention.
