Cole Burston/Bloomberg via Getty Images
Air Canada pilots protest at Toronto Pearson Airport in Toronto, Ontario, Canada, on Tuesday, August 27, 2024.
Key Points
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Air Canada has said it is prepared to shut down most of its operations later this month as it faces the threat of a potential strike or lockout over a labour dispute involving its pilots.
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The airline warned that if no agreement is reached with the Air Line Pilots Association by Sunday, either side could call for a 72-hour strike or a lockout.
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Air Canada explained that it is in talks with competing airlines to provide airline seats to its customers if its own flights are cancelled.
Air Canada said Monday it plans to shut down most of its operations if its pilots go on strike later this month.
The country’s largest airline warned that while contract negotiations with the Air Line Pilots Association (ALPA) continue, the two sides “remain far apart.” Air Canada said that if no agreement is reached, both sides could issue a 72-hour warning starting Sunday strike or lockout notice. It noted that this would trigger the three-day phase-out plan that would gradually suspend all flights until September 18.
The union represents more than 5,200 pilots from both Air Canada and Air Canada Rouge.
Air Canada CEO says closure likely unless union ‘moderates’ demands
Chief Executive Officer (CEO) Michael Rousseau said ALPA’s wage demands “far exceed average Canadian wage increases” and that a closure is “increasingly likely” if the union does not “moderate” these demands.
At a meeting late last month, Charlene Hudy, chair of Air Canada’s ALPA Master Executive Council, accused the airline of “failing to listen to our most pressing needs at the negotiating table regarding fair compensation, respectable retirement benefits and improvements in quality of life.”
Air Canada said it negotiate with other airlines to give their customers seats on their planes if a strike or lockout occurs. It added that passengers whose flights are cancelled can receive a full refund and can reschedule trips scheduled for Sunday up to and including 23 September without charge. It said this window could be extended if necessary.
Shares of Air Canada fell nearly 2% on Monday afternoon Toronto Stock Exchange (TSX).
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