Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Air Canada pilots end 10-year contract framework, eye bargaining

Published 05/29/2023, 04:18 PM
Updated 05/29/2023, 05:25 PM
© Reuters. FILE PHOTO: Air Canada planes are parked at Toronto Pearson Airport in Mississauga, Ontario, Canada April 28, 2021. REUTERS/Carlos Osorio/File Photo

© Reuters. FILE PHOTO: Air Canada planes are parked at Toronto Pearson Airport in Mississauga, Ontario, Canada April 28, 2021. REUTERS/Carlos Osorio/File Photo

By Allison Lampert

MONTREAL (Reuters) -Air Canada's pilots have ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said on Monday in a note to members seen by Reuters.

Air Canada pilots have previously said they are pressing for "historic" gains to narrow the earnings gap with higher-paid aviators at U.S. carriers.

Their counterparts at Onex Corp's WestJet Airlines reached a tentative agreement that would offer a 24% hourly raise over four years, plus other pay and benefits.

The estimated 4,500 pilots at Canada's largest carrier have received a 2% wage increase per year since reaching a deal in 2014.

The union had a Monday deadline for using a type of escape clause that would allow for negotiations this year. The agreement now runs until Sept. 29, 2023, although its provisions will apply beyond that date.

"We were willing to meet with the company if they wanted to provide us with a substantial proposal that would further our membership’s goals," said the letter, adding Air Canada did not seek to open discussions.

The Air Canada pilots group, which joined the Air Line Pilots Association (ALPA) this month, said in a separate document it expects a notice to bargain to be provided in early June.

"Our pilots may elect to use the option that was available to them to initiate bargaining for a new collective agreement," Montreal-based Air Canada said in an emailed statement.

© Reuters. FILE PHOTO: Air Canada planes are parked at Toronto Pearson Airport in Mississauga, Ontario, Canada April 28, 2021. REUTERS/Carlos Osorio/File Photo

"The current agreement, which has been in place for nine years, is testimony of the productive relationship we have with our pilots."

U.S. pilots made gains in a recent tentative agreement with American Airlines (NASDAQ:AAL) and a separate deal with Delta Air Lines (NYSE:DAL) which delivers a 34% pay increase over four years.

Latest comments

Definitely overpaid as it is.
Yea, until you're onboard during an emergency!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.