Air Canada Proposes Significant Pay Raise for Pilots Amid Contract Negotiations

Air Canada has put forth a proposal to increase the pay of more than 5,000 pilots by approximately 30 percent over the next three years. This offer aims to prevent a potential strike, as reported by BNN Bloomberg.

The proposed pay structure includes an immediate 20 percent increase, followed by annual raises. Notably, pilots in their initial four years of service would receive a larger percentage increase, according to sources familiar with the ongoing negotiations.

For example, a captain with ten years of experience flying a widebody aircraft, currently earning $350,000, could see their salary rise by more than $100,000 during the duration of the contract. The proposal also outlines enhancements to pilots’ pension and health benefits.

The discussions between Air Canada and the Air Line Pilots Association (ALPA) have been in progress for over a year. The previous decade-long contract ratified in 2014 provided pilots with annual raises of about 2 percent; however, no raises have been received since the previous year.

ALPA has highlighted that Air Canada pilots earn significantly less than their peers in the industry. Charlene Hudy, the head of ALPA’s local unit, emphasized the critical need for improved compensation, noting that about a quarter of pilots maintain secondary jobs to support their livelihoods, with nearly 80 percent doing so out of necessity.

A meeting is expected later this week as negotiations continue. Hudy earlier stated that discussions had “completely stalled.” In August, 98 percent of the pilots voted in favor of authorizing the union to strike if no agreement is reached, raising the possibility of a walkout by mid-September.

In light of potential disruptions, Air Canada has introduced a rebooking policy for customers traveling between September 15 and 23.

ALPA is advocating for a reduction in pay disparity with major US airlines, which have granted substantial raises to their pilots in recent contracts. For instance, last year, ALPA negotiated with United Airlines to provide compensation increases of up to 40 percent, including immediate raises between 13.8 percent and 18.7 percent.

An Air Canada spokesperson, Peter Fitzpatrick, expressed the company’s commitment to ensuring that its pilots remain the highest-paid in Canada, stating that they are open to any solutions, including arbitration, to achieve a reasonable settlement.

Additionally, in 2023, WestJet reached an agreement for a 24 percent pay increase over four years for its pilots.