Why Air Canada Pilots May Strike Soon

Early Monday morning, Canadian national carrier, Air Canada, released plans for reducing operations due to stalled negotiations with the carrier’s pilot group. The Air Line Pilots Association (ALPA) represents Air Canada’s 5,200 pilots and has been at the bargaining table with the airline for nearly a year working to establish a new pilot contract. 

The pilot group’s contract expired on Sept. 29, 2023. ALPA and the carrier have since been working on coming together with a new agreement to offer to the major carrier’s pilot group. During the travel surge following the pandemic, United States major carriers and respective labor groups worked similarly to provide updated contracts. American, Delta, and United all stuck deals with pilot unions at each carrier increasing wages, retirement benefits, and overall quality-of-life improvements. 

Air Canada pilots are seeking the same benefits provided to aviators at U.S. legacy carriers. According to ALPA, Air Canada compares itself with U.S. legacy carriers in terms of pay structure and benefits for corporate executives, performance metrics, and customer satisfaction. .

Air Canada pilots at an informational picket in downtown Toronto in May of 2024 (Photo: Air Line Pilots Association)

Pay Disparity

In regards to compensation, Air Canada pilots were paid wages competitive with U.S. carriers before the September 11th attacks in 2001. After that period, many pilot groups, including Air Canada’s, took pay concessions to keep their airlines afloat during a reduction in travel demand. Carriers such as Delta and United have since returned to wages and quality-of-life standards that are competitive and accepted by pilot groups.

However, since that period, Air Canada has continued to lag behind U.S. competition in terms of pay and quality-of-life benefits. According to Reuters, ALPA stated that hourly compensation at Delta Air Lines was roughly 45% more than that for pilots flying at Air Canada. 

While 45% is a significant difference, the carrier’s pilot group hasn’t seen pay rates increase at the same rate as inflation either. Placed in the agreement signed in 2020, the carrier’s pilot group has had a rate increase of 2% per year through 2023. According to Statista, the inflation increase in Canada in 2022 alone was a staggering 6.8%, outpacing the annual wage inflation increase by a whopping 4.8%. 

Across all major carriers, year-one pay is significantly lower than years two and beyond. Delta pilots on year two flying the Boeing 737 are currently making $192.22 per hour, according to a chart acquired by AirlinePilotCentral. Comparatively, Air Canada pilots flying the same aircraft are making $49.40 per hour, converted to USD from CAD 60.99. That is an astonishing 96 percent difference between the two rates.

The airline had previously proposed a 30% rate increase to the pilot group. However, this increase would still lag behind the carrier’s U.S. counterparts. 

Operational Disruption

The major carrier is announcing a proposed reduction in service with the anticipation of either a labor strike or a lockout initiated by the company. According to a press release from the carrier, 670 daily flights between Air Canada and Air Canada Rouge will be affected potentially disrupting over one hundred thousand travelers daily. The carrier is working with other airlines to rebook passengers on other flights to limit disruptions. 

While a standstill strike could occur, not all of the carrier’s operations will halt at once. Unless an agreement is reached by September 15, a countdown timer will begin. Over a 72-hour strike or lockout notice period, the carrier will reduce flight schedules placing its 252 aircraft and crews in locations desirable for safety, maintenance, and space utilization. 

The carrier anticipates a recovery period of seven to ten days to resume normal operations once an agreement is made with ALPA.

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