Air Canada urges federal government to direct arbitration to avert disruption

Air Canada said today that if the airline’s contract negotiations with its pilot union fail, a government direction for binding arbitration will be necessary to avoid a major disruption of air travel that would upset the plans of 110,000 or more travellers a day and delay time-sensitive cargo shipments.

In a newly release statement, the carrier said that there “have now been 100 days of meetings in contract negotiations between the company and the Air Line Pilots Association (ALPA), which represents 5,200 pilots at Air Canada and Air Canada Rouge. Tentative agreement has been reached on 70% of the more than 1,000 proposed changes suggested by ALPA. Air Canada has offered unprecedented wage increases, which the union has refused, publicly citing U.S. based wage levels. The negotiations have stalled between the parties, who will be in a legal strike or lock-out position as early as September 18, 2024.”

Michael Rousseau, President and Chief Executive of Air Canada, said that: “With talks nearing an impasse and time for negotiation running out, the travel plans of hundreds of thousands of Canadians are hanging in the balance.”

Rousseau continued: “We are taking all measures to mitigate any impact, but the reality is even a short work stoppage at Air Canada could, given the complexity of our business operating on a global scale, cause prolonged disruption for customers. So, while we remain committed to reaching a negotiated settlement with ALPA, the federal government should be prepared to intervene if talks fail before any travel disruption starts.”

The parties have met for 100 days over the past 15 months, during which 1,110 issues have been subject to negotiation. Over this time, the parties have tentatively agreed to amend over 70% of the articles to improve and modernize their collective agreement.

These include a 30% wage increase, which is unprecedented in Canada, significant improvements to the pilots’ defined benefit pension and health care plans, greater work-life balance provisions, and scheduling improvements that among other things give pilots more time at home. In return, Air Canada has sought no concessions.

On Sept. 9, 2024, Air Canada said it is preparing contingency plans to suspend flying through an orderly wind down of operations.

It would begin once a 72-hour strike or lock-out notice is issued, which can occur any time after 00:01 EDT on Sunday, September 15.

Flights throughout the system would be progressively cancelled over three days, with a complete shutdown as early as 00:01 EDT on Wednesday, September 18. Services by Air Canada Express would not be affected.

In its statement, Air Canada said that it “is not seeking immediate intervention. However, the carrier believes the Government of Canada should prepare in the event talks conclude without an agreement to use its powers to direct binding interest arbitration under Section 107 of the Canada Labour Code before a work stoppage becomes effective.”

Air Canada stated that the stoppage and the orderly shutdown of operations would immediately affect the travel of 110,000 people a day and ground tonnes of essential air cargo.

The airline believes recent government interventions in rail, port and airline labour disruptions in Canada provide a precedent. Moreover, the Code is designed for use to ensure industrial peace in cases where parties reach an impasse after meaningful collective bargaining has occurred.

Go to https://media.aircanada.com/labour-relations for more.