Government urges more negotiations as Air Canada shutdown looms

OTTAWA – Air Canada and their pilots are at an impasse, potentially forcing the Liberals to once again wade into the middle of a labour dispute.

The airline will start cancelling some flights as early as Friday. The Air Line Pilots Association, which represents 5,200 pilots, will be able to issue a 72-hour strike notice as soon as Sunday and the airline could also issue a lockout on that day.

On Twitter, Alberta Premier Danielle Smith called on the federal government to step in and stop the strike or lockout before it starts.

“The looming Air Canada pilot strike threatens to cripple our economy and there are no signs of progress. The impact would be immediate. Businesses, tourism, and essential travel will take a massive hit,” she said. “The federal government must take this issue seriously and push for a swift resolution before the impacts become irreversible.”

https://x.com/ABDanielleSmith/status/1833252720888676683

The government stepped in last month to send railway workers at both CN and CPKC, who move a combined $1 billion in freight every day, back to the job after a lockout at both firms that was only 16 hours old.

The Teamsters Rail Conference, who represented the workers, has appealed that decision in court and denounced the Liberals for interfering in the bargaining process. The Liberals also stepped in earlier this summer, sending WestJet mechanics to binding arbitration to avoid a labour disruption.

Hartley Witten, a spokesperson for Labour Minister Steven MacKinnon, said the government wants to see this issue resolved at the bargaining table.

“It is incumbent on both parties to work together to reach an agreement. Federal mediators are supporting the parties towards that end. Our government firmly believes in the collective bargaining process and Canadians are counting on the parties to get a deal,” he said.

The federal government has been at the table with the two sides for the past two months helping to achieve an agreement and federal mediators are still working with both sides.

Government sources, speaking on background, said they view the Air Canada dispute as different than the rail stoppage, but acknowledged there would be significant impacts if the pilots are grounded.

Air Canada said if they do receive a strike notice from the pilots on Sunday they will have no choice but to begin a shut down of their operations.

“Air Canada believes there is still time to reach an agreement with our pilot group, provided ALPA moderates its wage demands which far exceed average Canadian wage increases. However, Canadians have recently seen the chaos abrupt airline shutdowns cause for travellers, which obliges us to do everything we can to protect our customers from an increasingly likely work stoppage. This includes the extremely difficult decision to begin an orderly shutdown of Air Canada and Air Canada Rouge once a 72-hour strike or lock out notice is given,” said Michael Rousseau, the company’s president and CEO.

Rousseau said the union’s wage demands are too high and far exceed what other employees in Canada have demanded. He said the company was going public with its plans to alert the public and the government.

“We are publicizing our plans to give the more than 110,000 people who travel with us each day greater certainty and the opportunity to reduce the risk of being stranded by using our goodwill policy,” he said. “We are also alerting the Government of Canada to the potential disruption’s impact upon Canadians.”

Air Canada said pilots who reach the status of captain, which can happen between three and 15 years, can make between $215,075 and $351,958 per year, while also getting generous benefits. The union contends those numbers apply to only a narrow number of the airline’s pilots with most making much less after years of training and experience.

Charlene Hudy, a first officer and the senior union member representing Air Canada pilots, said Air Canada’s rhetoric on the potential lockout has been unhelpful.

“Rather than taking shots at the professional pilots who safely transport their passengers day in and day out, Air Canada should stop threatening to disrupt air travel and come to the bargaining table with serious proposals,” she said in an email.

Hudy said Air Canada can afford to match recent wage increases in the U.S., where pilots are now paid as much as 40 per cent more than Air Canada pilots.

“Air Canada continues to post record profits and reward its executives handsomely, while expecting pilots to accept below market compensation. Now, because of their corporate greed, Air Canada is preparing to disrupt flights and inconvenience passengers,” she said. “Air Canada should get back to the bargaining table — and get serious about negotiating a contract that reflects the unique contributions of its pilots.”

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