Tue. Oct 8th, 2024

Air Canada Warns of Shutdown as Strike Negotiations With Pilots Falter

Air Canada is bracing for a potential shutdown as ongoing negotiations between the airline and its pilots have yet to produce a new collective agreement. Talks between the airline, the country’s largest carrier, and the Air Line Pilots Association, representing over 5,200 pilots at Air Canada and Air Canada Rouge, remain at an impasse, the company confirmed on Monday.

In August, the union voted overwhelmingly in favor of authorizing a strike if an agreement couldn’t be reached. Since June 2023, contract negotiations have centered on several key issues, with one of the most significant being the wage gap between Canadian pilots and their U.S. counterparts. The pilots are currently working under a contract that was last negotiated in 2014, and the union claims the terms are outdated in terms of both pay and quality of life.

Air Canada announced that if a deal isn’t struck by September 15, either side could issue a 72-hour strike or lockout notice, triggering a three-day wind-down plan for the airline’s operations.

Despite the current challenges, Air Canada’s President and CEO, Michael Rousseau, remains hopeful that an agreement can be reached, stating that the proposed wage increases “far exceed” the average wage increase for Canadian workers.

However, Rousseau also acknowledged the potential for significant disruptions. “Abrupt shutdowns can cause chaos for travelers, and we want to prepare our customers for the increasingly likely work stoppage,” he said.

Should a strike or lockout notice be issued, Air Canada will begin the process of suspending most of its operations. The company is finalizing contingency plans to handle the shutdown in an orderly manner.

“This includes the extremely difficult decision to start a managed shutdown of Air Canada and Air Canada Rouge once a 72-hour notice is given, possibly as soon as this Sunday,” Rousseau added.

To mitigate disruptions, Air Canada is offering free rebooking for customers whose flights may be affected by the strike. Rousseau emphasized the airline’s efforts to provide clarity and options to the more than 110,000 passengers who fly with Air Canada daily, urging them to take advantage of the airline’s goodwill policy to change or defer upcoming travel without fees.

“We are also in communication with the Government of Canada to highlight the potential impact this disruption could have on Canadians,” Rousseau said.

While Air Canada Express flights, operated by third-party carriers such as Jazz and PAL Airlines, will continue, these regional partners handle only about 20% of Air Canada’s daily passengers. Many of these travelers typically connect to mainline Air Canada flights, which could complicate travel plans.

In the event of cancellations, affected customers will be notified by Air Canada and will be eligible for full refunds, available through the airline’s website or mobile app. The airline is also working with other carriers to secure space for stranded passengers, but availability is expected to be extremely limited.

Customers will be contacted by Air Canada or their travel agencies if alternative flight options on other airlines are available. However, the airline warned that, in many cases, the only available options may be refunds, travel credits, or rescheduling on a future Air Canada flight.

More information on the situation is available through Air Canada’s official channels.

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