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Air Canada has reached a last-minute agreement with its pilots’ union, averting a strike that would have cancelled more than 1,000 daily flights worldwide.
Bloomberg News Agency quoted a statement by Air Canada today, Sunday, saying that the company and the Air Line Pilots Association, which represents more than five thousand pilots in the company, reached an initial agreement regarding a new four-year contract, and negotiations continued for more than a year.
The Air Line Pilots Association has sought to close the wage gap with its U.S. counterparts, especially for entry-level pilots.
Air Canada has offered to raise pilots’ wages by 4% annually over three years, plus a 26% advance pay increase and other benefits, according to a source who asked not to be identified discussing confidential details of the agreement.
The 42% increase in compensation over the four-year contract is expected to cost Air Canada $1.9 billion.
“After several weeks of intense, round-the-clock negotiations, progress has been made on several key issues including compensation, retirement and work rules,” Charlene Hoddy, president of the Canadian Pilots Association’s executive board, said in a statement to Air Canada pilots.
The agreement requires the approval of a majority of the members entitled to vote.
