(Montreal) Air Canada pilots have given the green light to an agreement in principle with the airline, allaying any fears of a future strike.
The International Airline Pilots Association (ALPA) said fliers voted 67 percent in favor of ratification.
The deal gives the airline’s 5,400 pilots a cumulative pay rise of almost 42% over four years.
This increase exceeds the significant gains that pilots made last year at the three largest US airlines, where pay increases ranged between 34 and 40% – even though they started from a higher base level.
Despite the sharp increase, the fact that about a third of pilots voted to reject the deal reveals a divide on issues such as work schedules, quality of life and a significant pay gap between new hires and more experienced crew members.
Charlene Hudy, who chairs the union’s Air Canada contingent, argued the contract demonstrates the company’s commitment to its pilots.
“This agreement allows Air Canada pilots to compensate for the losses they have suffered over the past 20 years and provides a solid foundation for the future,” stated Mr.me Hudy in a statement Thursday.
Air Canada also welcomed the pilots’ approval.
“This is a win-win agreement that will ensure our pilots will continue to be the highest paid in Canada and enjoy the improvements they have been asking for in their work-life balance,” said President and CEO Michael Rousseau , in a press release. Furthermore, the agreement gives our company the flexibility it needs, while also allowing it to create a framework for its future growth and for its network. »
The agreement in principle, reached in mid-September after more than a year of negotiations, made it possible to avoid a strike which would have led to the cancellation of 670 flights and affected 110,000 passengers a day.
In recent weeks, the union has held roadshows for members about the potential deal.
Mme Hudy had warned her colleagues during a virtual town hall last month that she would resign if they chose to reject the deal, raising the stakes as pilots debated whether to accept the pay gains or try to negotiate another deal. The Canadian Press obtained a copy of his statement and confirmed its contents with two pilots.
About 99% of eligible pilots voted in the hearing, the union said.
The contract is effective immediately, retroactive to September 2023 and expires on September 29, 2027.
Under the new and previous agreements, pilots earn significantly less during their first four years with the company before getting a big pay raise starting in the fifth year.
Some employees had lobbied for the complete removal of the so-called “flat rate”, where income remains stable regardless of the type of aircraft flown. Typically, salaries increase with aircraft size. But the newly signed agreement would only reduce the four-year period of lower pay to two years, according to a copy of the agreement obtained by The Canadian Press.
Even in the third and fourth years, wages would be significantly lower than in the fifth year. The hourly rate increases by almost 40% in the fifth year, a much larger increase than in any other period, the agreement states.
Assuming pilots work about 75 hours a month — a common industry baseline — new hires will now earn between $75,700 and $134,000, compared with nearly $187,000 in the fifth year and more than $367,000 for an experienced captain flying a Boeing 777.
With the latest hires, experts say more than a third of the carrier’s roughly 5,200 active pilots could currently earn entry-level wages. Many of them are not fresh out of school, but come to Air Canada after long careers with other airlines.