Air Canada said on Monday that it is preparing to shut the airline down ahead of a potential strike by as many as 5,000 pilots as wage negotiations hit an impasse.
The Toronto-based carrier has reportedly offered pilots at the mainline flag carrier and its Air Canada Rouge subsidiary a pay rise of up to 30% but the Association of Air Line Pilots (ALPA) is seeking hikes of closer to 45%.
Federal conciliation between the airline and its pilots came to an unsuccessful end last month, releasing the union into a 21-day cooling-off period, after which pilots will be allowed to issue a 72-hour strike warning.
Although negotiations are continuing during the cooling off period, the airline said on Monday that the two sides remain far apart.
“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,” commented Air Canada’s CEO and President Michael Rousseau on Monday.
ALPA are basing their wage demands on what their peers earn at US-based carriers such as Delta Air Lines, but Air Canada insists that the wage markets are so different that the union can’t compare the two.
If last ditch wage talks fail to break the deadlock, Air Canada says it will initiate a three-day wind down plan from the moment that ALPA issues its 72-hour strike notice.
The earliest that ALPA can issue its warning is from September 15.
“We understand and apologize for the inconvenience this would cause our customers,” Rousseau continued. “However, a managed shutdown is the only responsible course available to us.”
Air Canada is now encouraging passengers due to fly after September 15 to take advantage of a ‘good will’ travel policy that was put in place after federal cancellation came to an end.
Customers will be allowed to defer travel at no cost for travel between September 15 and September 23, although Air Canada says it is also trying to secure as many seats on other airlines as possible in order to avoid stranding tens of thousands of passengers.
In June, rival Canadian carrier WestJet was forced to cancel hundreds of flights after its mechanics walked off the job in a ‘surprise’ strike that caught the airline off guard.
Canada’s labor courts had ordered the two sides into binding arbitration, but the strike took place before the arbitration hearing was heard – WestJet accused the mechanics union of taking advantage of the ‘limbo’.
In the case of Air Canada and the ALPA pilots union, Canada’s labor courts have refused to get involved.
Of the 5,200 pilots represented by ALPA at Air Canada and Air Canada Rouge, 98% took part in the strike ballot, and 98% of those voted to authorize strike action if bargaining failed.
Last week, ALPA said that some progress had been made in federal cancellation but that Air Canada was “not listening” to its pay rise demands. Sources claim Air Canada is offering a total 30% pay rise which would include an immediate 20% uplift.
Air Canada is Montreal based, not Toronto.