Air Canada and Canadian business leaders are calling on the federal government to step in and prevent a labour disruption if the airline and its pilots can’t resolve a standoff over wages and benefits.<\/p>\n\n\n\n
Both pilots and management will be in a legal strike or lockout position as early as Sept. 18 if they don’t reach an agreement.<\/p>\n\n\n\n
“Canada\u202fcannot afford another major disruption to its transportation network,\u201d said Goldy Hyder, president and CEO of the Business Council of\u202fCanada.\u00a0<\/p>\n\n\n\n
\u201cA labour disruption at Air Canada would ripple through our economy, from tourism to critical supply chains. The federal government must be prepared to intervene if necessary.\u201d <\/p>\n\n\n\n
Air Canada and its pilots remain deadlocked in negotiations that have lasted over a year, with pilots requesting wage increases in line with their counterparts at some U.S. airlines.\u00a0<\/p>\n\n\n\n
Air Canada said the two parties have already tentatively agreed to a 30 percent wage increase, significant improvements to pension and health care plans, greater work-life balance provisions, and scheduling improvements, among other points of concern.<\/p>\n\n\n\n
A strike would impact as many as 110,000 or more passengers each day during a busy travel season, Air Canada said.\u00a0<\/p>\n\n\n\n
“Canadians and businesses nationwide are going to suffer the consequences of labour disruption in the air travel industry,\u201d said\u202fCandace Laing, president and CEO of the Canadian Chamber of Commerce. <\/p>\n\n\n\n
\u201cWe need proactive, decisive action from all actors and from the federal government to ensure we can avoid more damaging consequences for everyone.\u201d <\/p>\n\n\n\n
Business leaders said air cargo is also crucial to Canada\u2019s export economy, delivering medical supplies, agricultural products, and critical parts for manufacturers.\u00a0\u00a0<\/p>\n\n\n\n
“Quebec\u202fcompanies risk being hit with another labour disruption they cannot afford,\u201d said\u202fKarl Blackburn, president and CEO of Conseil du patronat du Qu\u00e9bec. \u201cA labour disruption at Air Canada would have severe consequences for our businesses across\u202fQuebec, particularly in sectors such as manufacturing, tourism, and exports. <\/p>\n\n\n\n
\u201cWe depend on reliable air transportation to move goods, materials, and people. Even a short disruption would lead to costly delays and further strain our supply chains. The federal government must intervene to ensure\u202fQuebec\u202fbusinesses can continue to thrive and remain competitive in both domestic and international markets.\u201d <\/p>\n\n\n\n
Air Canada has also asked Ottawa to intervene if the two parties can\u2019t reach an agreement. <\/p>\n\n\n\n
“With talks nearing an impasse and time for negotiation running out, the travel plans of hundreds of thousands of Canadians are hanging in the balance,” said Michael Rousseau, president and chief executive of Air Canada. <\/p>\n\n\n\n
“We are taking all measures to mitigate any impact, but the reality is even a short work stoppage at Air Canada could, given the complexity of our business operating on a global scale, cause prolonged disruption for customers. So, while we remain committed to reaching a negotiated settlement with ALPA [the pilots’ union], the federal government should be prepared to intervene if talks fail before any travel disruption starts.”<\/p>\n\n\n\n