Air Canada Pilots Ratify the Most Lucrative Contract in the Airline’s History

Air Canada pilots have ratified the most lucrative contract in the airline’s history, approving the four-year deal with a 67% to 33% vote, thus avoiding the possibility of a strike or lockout at the country’s largest carrier. The Air Line Pilots Association (ALPA) reported that 98.6% of its members participated in the vote.

Charlene Hudy, head of ALPA’s Air Canada bargaining unit, which represents over 5,200 members, explained that the goal had been to secure the best possible agreement, which she believed they had achieved. She emphasized that the new contract restored some of the value that Air Canada pilots had lost over the past two decades. Hudy noted that the contract is valued at an additional $1.9 billion for ALPA members compared to the previous one. She attributed the success of the agreement to the union’s strong negotiating position, which she referred to as “peak leverage.”

Hudy had previously indicated that if the deal had been rejected, she would have stepped down. At a press conference, she expressed confidence in the deal’s ratification but acknowledged dissatisfaction among younger pilots. She pointed out that other recent tentative agreements in the labor world had also been rejected by union members, adding that one can never be certain of the outcome until the votes are counted.

Air Canada CEO Michael Rousseau expressed the company’s satisfaction with the ratification in a written statement, describing the agreement as mutually beneficial. He highlighted that the contract would ensure Air Canada pilots remained the best compensated in Canada while also providing the work-life balance improvements they had sought. Additionally, he emphasized that the deal offered the airline flexibility and a framework for future growth.

A strike or lockout could have resulted in the cancellation of over 600 flights daily, affecting more than 100,000 passengers per day. Prior to the tentative agreement, business lobby groups in Canada and the U.S. had urged the federal government to intervene to prevent a potential strike.

The four-year agreement, reached in September, includes raises of nearly 40%, with a 26% increase in the first year and 4% annual increases in the following years. Since the previous contract expired in September 2023, the first-year raise was made retroactive. The new deal is set to expire on September 29, 2027. Despite the deal’s benefits, a significant pay gap remains between junior pilots and their more experienced colleagues, with first-year pilots earning as little as $75,700, while experienced pilots on wide-body aircraft, such as the Boeing 777, can earn up to $367,000.

Labor and industry experts indicated that this pay disparity likely contributed to many junior pilots voting against the deal. Stephanie Ross, a labor studies professor at McMaster University, explained that the newer, younger pilots were likely less satisfied due to having more ground to catch up. She noted that having two different wage scales could create challenges for unions that have made compromises over the past two decades. Despite its imperfections, Ross described the deal as excellent overall, as it addressed some gaps for junior employees and significantly narrowed the wage gap between Air Canada pilots and their American counterparts.

John Gradek of McGill University remarked that such a deal would not have been possible under the pilots’ previous union, the Air Canada Pilots Association (ACPA), which he described as an “old-boys club” that was not as aggressive in negotiations.

Addressing the dissatisfaction among younger pilots, Hudy urged patience, pointing out that the new deal reduced the time spent on fixed, lower wages from four years to two. She also mentioned that the union would push for further improvements in the next round of contract talks, which is set to begin in about two and a half years. Hudy acknowledged, however, that not all members were satisfied, stating that some pilots might not agree with her.

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