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Key Takeaways
- Air Canada said it is prepared to shut down most of its operations later this month as it faces a potential strike or lockout as a result of a labor dispute with its pilots.
- The carrier warned that without a deal with the Air Line Pilots Association by Sunday, either side can call for a 72-hour strike or lockout notice.
- Air Canada explained that it has been in talks with rival carriers to give airplane seats to its customers if its own flights are canceled.
Air Canada said Monday that it is making plans to shut down most of its operations if its pilots go on strike later this month.
The country’s biggest air carrier warned that while contract talks with the Air Line Pilots Association (ALPA) continue, the two sides “remain far apart.” Air Canada said if no deal is reached, beginning on Sunday either side could issue a 72-hour strike or lockout notice. It noted that would trigger its three-day wind-down plan that would progressively suspend all flights by Sept. 18.
The union represents more than 5,200 pilots for both Air Canada and Air Canada Rouge.
Air Canada CEO Says Shutdown Likely Unless Union ‘Moderates’ Demands
Chief Executive Officer (CEO) Michael Rousseau said that the ALPA’s salary demands “far exceed average Canadian wage increases,” and that unless the union “moderates” them, a shutdown is “increasingly likely.”
At a rally late last month, Air Canada ALPA Master Executive Council chair Charlene Hudy accused the airline of “not listening to our most pressing needs at the negotiating table regarding fair compensation, respectable retirement benefits, and quality-of-life improvements.”
Air Canada said that it has been negotiating with other air carriers to get its customers seats on their planes if a strike or lockout occurs. It added that passengers whose flights are canceled will be able to receive a full refund, and that they can reschedule trips set for Sunday through Sept. 23 at no charge. It said that window may be expanded if necessary.
Air Canada shares were down nearly 2% Monday afternoon on the Toronto Stock Exchange (TSX).