'Air Canada has been enjoying a discount on our pilot labour'
The federal government is not considering a move to force Air Canada's pilots back to work if they go on strike, according to a report from Reuters.
This is the case even though Ottawa stepped in recently to put a stop to the work stoppage by the Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC).
"We found ourselves in exceptional circumstances," said Labour Minister Steven MacKinnon.
MacKinnon invoked Section 107 of the Canada Labour Code to impose binding arbitration on the dispute between CN and CPKC and the Teamsters Canada Rail Conference (TCRC).
TCRC has launched appeals challenging the binding arbitration order. Prime Minister Justin Trudeau previously defended the government’s decision to step into the row.
Air Canada pilots’ wages
Air Canada pilots have demanded wages closer to counterparts at carriers like United Airlines and Delta although neither the Canadian airline nor its pilots have disclosed specific pay proposals, according to the Reuters report.
At Air Canada, senior captain salaries of up to $350,000 a year have been advertised, according to the report.
The employer said it intends to reach a deal that recognizes pilots' contributions but "also takes into consideration travelers' increasing reluctance to pay higher airfares."
Under their old contract, pilots received annual wage increases of about 2%, the pilots said, according to the report. That came after back-to-work legislation averted a stoppage in 2012, said Reuters.
However, Raymond James analysts estimated a 5% increase in pilot wages will increase Air Canada's costs by $70 million. The employer has already slashed its full-year earnings estimates by 18%.
Meanwhile, United's pilot contract ratified in September 2023 raised pay about 42% and is estimated to cost the Chicago-based airline more than $10 billion over four years, reported Reuters.
In comparing wages under United's latest contract and Air Canada's expired contract, which is in place for now, Reuters found that United pilots earned higher hourly pay at all levels. But the disparity was greater among junior aviators.
For example, a third-year first officer at United flying the A320 narrow-body airliner earns $196.03 per hour, compared with C$81.02 an hour at Air Canada.
"Air Canada has been enjoying a discount on our pilot labour," said airline union President Charlene Hudy in the Reuters report.
A previous report noted that Air Canada could have to pay more than $100 million to over 2,000 workers who lost their jobs at maintenance centres more than a decade ago.
