TORONTO- Air Canada (AC) has offered a 30% pay hike to its pilots to prevent strike action, according to Bloomberg News.
The proposed agreement includes a minimum 20% immediate increase in pay, followed by annual raises over three years.
Air Canada Hike Pilots Salary
This agreement would avert a strike set to begin as early as September 17, avoiding potential travel disruptions across Canada.
While declining to comment on the specifics, Air Canada stated its openness to any reasonable settlement with the pilot union, including arbitration.
More than 5,000 unionized pilots have been advocating for significant wage increases to address the salary gap with their higher-earning U.S. counterparts, who secured record contracts in 2023 due to pilot shortages and strong travel demand.
Air Canada’s pilots have stated that Delta Air Lines (DL) pay rates are up to 45% higher than Air Canada’s hourly wages.
After the end of federal conciliation in contract negotiations, the union and airline entered a mandated three-week cooling-off period starting August 27.
Air Canada pilots plan to strike as early as September 17, escalating tensions in ongoing contract negotiations with the airline.
Despite private mediation efforts, significant unresolved differences led the parties to enter conciliation. The Air Line Pilots Association (ALPA) is now seeking a strike mandate from its 5,500 members.
Pilot Shortage and Other Problems
The union cites a substantial pay gap with American counterparts, with some U.S. pilots earning twice as much as their Canadian equivalents.
The pilots’ previous 10-year collective agreement expired in September 2023 and was terminated early through an escape clause.
In March 2024, around 70% of Air Canada pilots were reported looking to quit the airline due to poor pay and rising costs.
Last year in August, Air Canada had to make adjustments to its flight schedule for Calgary as it failed to recruit new pilots.
What are your thoughts on Air Canada’s decision to hike Pilots Salary to avoid a strike? Let us know in the comment section.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.
