Written by Allison Lampert, David Ljunggren, and Rajesh Kumar Singh
(Original Source: Reuters) – The Canadian government source disclosed to Reuters this week that Canada is hesitant to mandate Air Canada’s pilots back to work in case of a strike, in contrast to the government’s intervention in ending work stoppages at the country’s two main railroads earlier this month.
Approximately 5,400 Air Canada pilots, seeking pay levels comparable to their U.S. counterparts, have indicated they may strike as soon as September 18 if necessary, as their 10-year contract expired almost a year ago with no scheduled negotiations in sight.
The Air Line Pilots Association, representing Air Canada pilots and most U.S. airline pilots, expressed concerns about potential federal intervention, similar to what occurred with the railroads. The government source emphasized Ottawa’s commitment to collective bargaining and reluctance to swiftly utilize its power to resolve labor disputes.
Labour Minister Steven MacKinnon, who intervened in the rail dispute, explained to union workers that extreme economic impacts prompted his decision, with the Teamsters union challenging the ruling in court.
The reluctance to interfere at Air Canada may also be influenced by political factors, as Prime Minister Justin Trudeau’s minority Liberal government relies on support from the pro-union New Democratic Party in parliament and aims to secure union votes ahead of the upcoming election.
Wage Gap
Air Canada pilots are seeking wages closer to those at U.S. carriers like United Airlines and Delta, although specific pay proposals have not been disclosed by either party. United’s recent pilot contract included substantial pay raises, reflecting a trend seen at other U.S. airlines amidst a travel boom and pilot shortage.
Air Canada emphasized its intent to reach a mutually beneficial agreement that recognizes pilots’ contributions while considering travelers’ affordability concerns. The airline’s earnings outlook has already weakened, with potential wage increases for pilots expected to add significant costs.
Comparisons between United’s latest contract and Air Canada’s expired contract reveal disparities in hourly pay rates, with Air Canada pilots expressing dissatisfaction with the current wage structure.
Strikes within the commercial aviation sector are infrequent in North America but impactful, as seen in the resolution of a dispute between WestJet Airlines and its mechanics following government intervention earlier this year.
(Note: All currency conversions are based on the exchange rate of $1 = 1.3484 Canadian dollars)
