Air Canada reaches preliminary agreement with pilots' union to avoid shutdown

On September 15, 2024, news from Ottawa, Ontario. Air Canada has reached an agreement with the union representing its pilots on a labor agreement, which is expected to prevent Canada's largest airline from shutting down. Earlier on Sunday, Air Canada announced in a statement that it had reached a four-year tentative collective agreement with the Air Line Pilots Association. The terms of the agreement will remain confidential until approved by union members and the airline's board of directors.

The pilots' association said that its main executive committee for Air Canada voted to approve this tentative agreement on behalf of more than 5,400 pilots. It is expected to bring an additional $1.9 billion in revenue to pilots during the agreement period. Federal Labor Minister Steven Mackinnon confirmed the agreement and praised the company and the union.

Contract negotiations between the two sides have lasted for more than a year. The union said that pilots are seeking wages competitive with their American counterparts, while Air Canada, under record profits, expects pilots to accept sub-market-level pay. A 72-hour strike or shutdown notice could have been issued starting on Sunday, triggering a three-day phased shutdown plan and a full shutdown as early as September 18. Earlier this week, business leaders urged the federal government to intervene in the negotiations. Mackinnon said that the two sides should be able to reach a collective agreement. Many business groups called for action to avoid economic disruptions. New Democratic Party leader Jagmeet Singh expressed opposition to efforts to force pilots to return to work.