Air Canada Pilots Secure Significant Wage Increase in New Contract

Air Canada pilots have successfully ratified a new contract, marking the most lucrative agreement in the airline’s history. Approved by a 67-33 majority, the four-year deal prevents an immediate threat of a strike or lockout that could have significantly disrupted operations at Canada’s largest airline.

Charlene Hudy, head of the Air Line Pilots Association‘s (ALPA) Air Canada bargaining unit, had indicated her potential resignation if the deal was not accepted. The agreement was seen as crucial in avoiding a situation that might have led to the cancellation of over 600 flights per day, affecting more than 100,000 passengers daily.

Prior to reaching this tentative agreement, business lobby groups from both Canada and the United States had called on the federal government to intervene and prevent a possible strike. The resultant contract outlines a near 40 percent increase in wages for pilots. In the first year alone, pilots are set to receive a 26 percent pay raise, with subsequent increases of four percent each year. Additionally, the initial 26 percent rise is retroactive to the previous year.

Despite the significant wage increases, the contract retains a notable pay disparity within the pilot ranks. Junior pilots are slated to start with an annual salary as low as $75,700, while their more seasoned counterparts flying long-haul aircraft like the Boeing 777 could earn up to $367,000. This wage gap is believed by labor and industry analysts to have been a factor for many junior pilots voting against the agreement.

Negotiations for this contract began in September and concluded amidst calls for governmental intervention, highlighting its critical importance to the smooth operation of Air Canada’s services.