Air Canada and Canadian business leaders are calling on the federal government to step in and prevent a labour disruption if the airline and its pilots can’t resolve a standoff over wages and benefits.
Both pilots and management will be in a legal strike or lockout position as early as Sept. 18 if they don’t reach an agreement.
“Canada cannot afford another major disruption to its transportation network,” said Goldy Hyder, president and CEO of the Business Council of Canada.
“A labour disruption at Air Canada would ripple through our economy, from tourism to critical supply chains. The federal government must be prepared to intervene if necessary.”
Air Canada and its pilots remain deadlocked in negotiations that have lasted over a year, with pilots requesting wage increases in line with their counterparts at some U.S. airlines.
Air Canada said the two parties have already tentatively agreed to a 30 percent wage increase, significant improvements to pension and health care plans, greater work-life balance provisions, and scheduling improvements, among other points of concern.
A strike would impact as many as 110,000 or more passengers each day during a busy travel season, Air Canada said.
“Canadians and businesses nationwide are going to suffer the consequences of labour disruption in the air travel industry,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce.
“We need proactive, decisive action from all actors and from the federal government to ensure we can avoid more damaging consequences for everyone.”
Business leaders said air cargo is also crucial to Canada’s export economy, delivering medical supplies, agricultural products, and critical parts for manufacturers.
“Quebec companies risk being hit with another labour disruption they cannot afford,” said Karl Blackburn, president and CEO of Conseil du patronat du Québec. “A labour disruption at Air Canada would have severe consequences for our businesses across Quebec, particularly in sectors such as manufacturing, tourism, and exports.
“We depend on reliable air transportation to move goods, materials, and people. Even a short disruption would lead to costly delays and further strain our supply chains. The federal government must intervene to ensure Quebec businesses can continue to thrive and remain competitive in both domestic and international markets.”
Air Canada has also asked Ottawa to intervene if the two parties can’t reach an agreement.
“With talks nearing an impasse and time for negotiation running out, the travel plans of hundreds of thousands of Canadians are hanging in the balance,” said Michael Rousseau, president and chief executive of Air Canada.
“We are taking all measures to mitigate any impact, but the reality is even a short work stoppage at Air Canada could, given the complexity of our business operating on a global scale, cause prolonged disruption for customers. So, while we remain committed to reaching a negotiated settlement with ALPA [the pilots’ union], the federal government should be prepared to intervene if talks fail before any travel disruption starts.”
In an interview with Bloomberg, an airline spokesperson said arbitration is “a path that seems reasonable.”
Some orders for cargo services are already being turned away, and passenger cancellations could begin as early as Friday to avoid stranding travellers abroad, Bloomberg reported.
At the time of writing, Ottawa had not publicly responded, but it could ask the Canada Industrial Relations Board to force arbitration, just as it did in recent rail industry lockouts.
At a press conference, NDP leader Jagmeet Singh told reporters he is opposed to the federal government intervening in the dispute.
“If there’s any bills being proposed on back to work legislation, we’re going to oppose that,” Singh said. “We’re going to fight back against that. We’re never going to support back-to-work.”
The NDP recently scrapped its support agreement with the minority Liberal government, meaning a non-confidence vote could trigger a federal election.
Speaking about the Air Canada standoff in another news conference, Conservative leader Pierre Poilievre said his party would not support “pre-empting those negotiations.”
“I would call on Air Canada to negotiate in good faith with the pilots,” he said in a segment recorded by Global News. “We stand with the pilots and their right to fight for a fair deal, good wages.”
Business leaders are looking for assurances they won’t be hit with further losses as many are still recovering from the effects of the Covid-19 pandemic.
“The economy is already fragile after recent disruptions in our transportation networks,” said Dan Kelly, president and CEO of the Canadian Federation of Independent Businesses.
“Another labour dispute would further damage Canada’s standing as a reliable global trading partner. The government must act promptly to help protect small businesses across the country.”
