Tariff conflict at Air Canada: Strike looms starting Sunday

Air Canada and its pilots are embroiled in a deadlocked labor dispute over a new employment contract. If no agreement is reached by Saturday, September 14, either party could announce a strike or lockout, triggering Air Canada’s three-day contingency shutdown process, during which flights would be gradually halted and operations would completely cease as of Wednesday, September 18, at 00:01 EDT (04:01 GMT) at the earliest. Air Canada CEO Michael Rousseau emphasized on Thursday that the airline remains committed to reaching an agreement, but accused the pilots' union of excessive salary demands. The union, on the other hand, stated that a strike could be averted if Air Canada presents a fair offer. Air Canada and its subsidiary Air Canada Rouge operate nearly 670 flights daily. A strike could significantly impact 110,000 passengers daily as well as cargo transport. According to Desjardins economists, the economic repercussions would be substantial: a two-week strike could cost Canada’s real GDP approximately 1.4 billion Canadian dollars, equating to a daily loss of about 98 million Canadian dollars. The pilots are demanding salaries that would bridge the gap with their counterparts at major U.S. airlines such as United Airlines. Over the past two years, U.S. pilots have secured significant pay raises, driven by a travel boom and staffing shortages. For instance, United Airlines’ new contract includes pay increases of about 42%, resulting in some pilots earning 92% more than their Air Canada counterparts. Prime Minister Justin Trudeau said on Friday that the government would not intervene, but would pressure both sides to avoid a strike. While Air Canada called on Thursday for federal intervention in the event of an imminent strike, Federal Labor Minister Steven MacKinnon stressed that any intervention would only occur after the commencement of labor action. For travelers, this means that Air Canada is obligated to rebook passengers free of charge on the next available flights or offer a refund and return transportation to the point of origin in case of flight cancellations due to a strike. Flexible travel waivers have been issued for flights between September 15 and 23, although seat availability on other airlines may be limited.