Air Canada and the Air Line Pilots Association have reached a tentative four-year collective agreement, potentially averting a shutdown of Canada's largest airline. The agreement, subject to ratification by union members and approval by the airline's board of directors, aims to recognize the contributions of over 5,400 pilots while setting a new framework for company growth. The terms of the deal, which remain confidential, are expected to generate an additional $1.9 billion for the pilots over the agreement's duration.
The negotiations, which have been ongoing for more than a year, have focused on key issues such as compensation, retirement, and work rules. The pilots have been seeking wages competitive with their U.S. counterparts, while the airline, despite posting record profits, has been expecting pilots to accept below-market compensation.
The potential agreement comes after several weeks of intense round-the-clock negotiations, with both parties expressing satisfaction with the outcome. Federal Labor Minister Steven MacKinnon praised the agreement, highlighting the importance of negotiated settlements in preventing disruptions for Canadians.
While the possibility of a strike or lockout loomed, the agreement has averted the need for such actions. The airline had warned of a potential full work stoppage if a resolution was not reached, which could have impacted the travel plans of over 110,000 passengers daily.
Business leaders had called for government intervention earlier in the week to avoid economic disruptions, but the government maintained that the parties should be able to reach a collective agreement without external interference. The NDP Leader Jagmeet Singh stated opposition to any back-to-work legislation, emphasizing the importance of fair negotiations for all parties involved.
