Air Canada urges government intervention as labor dispute with pilots escalates

On September 13, 2024, news from Ottawa, Ontario. As the labor dispute between Canada's largest airline, Air Canada, and its pilots continues to escalate, on Thursday, the company and business leaders urged the federal government to step in and mediate the negotiations to avoid a shutdown. However, the labor minister said the two sides should reach an agreement through negotiations.

Air Canada spokesperson Christoph Hennebele said the company is committed to negotiations but is facing unreasonable salary demands from the Air Line Pilots Association and the other side refuses to make concessions. The union representing 5,200 pilots said Air Canada continues to generate record profits but asks pilots to accept salaries below market levels. Contract negotiations between the two sides have been ongoing for more than a year. Pilots hope to obtain salaries competitive with their counterparts in the United States. Starting from Sunday, either side can issue a 72-hour strike or shutdown notice. The airline said it will trigger a three-day phased shutdown plan, and the countdown to a full shutdown could begin as early as September 18.

Hennebele said it is not asking the government to step in immediately but should be ready to avoid major disruptions to Canadians caused by an airline shutdown. Many business groups called for action on Thursday, including binding arbitration to avoid economic disruptions. Candice Lane, president of the Canadian Chamber of Commerce, said arbitration can help the two sides reach a solution. Goldy Hyder, CEO of the Business Council of Canada, said Canada can no longer afford major disruptions to the transportation network.

Federal Labor Minister Steven Mackinnon said on Wednesday evening that the two sides should reach an agreement, saying that all parties should make efforts instead of relying on government intervention. In August, the Canadian government had asked the labor relations board to issue a back-to-work order to end a railway shutdown, but Mackinnon said this situation is different. Jagmeet Singh, leader of the New Democratic Party, said on Thursday that he opposes any effort to force pilots to return to work.