Air Canada preparing suspension of flights should labour talks with pilots fail

UNSPLASH/John McArthur

Air Canada, the country’s largest airline, announced it’s finalizing contingency plans to suspend most of its operations should talks with workers break down in coming days.

Talks with the Air Line Pilots Association (ALPA), which represents more than 5,200 pilots at Air Canada and Air Canada Rouge, remain far apart, the airline said in a statement posted on its Website. Either party may issue a 72-hour strike or lock out notice beginning Sept. 15, which would trigger the carrier's three-day wind down plan.

"Air Canada believes there is still time to reach an agreement with our pilot group, provided ALPA moderates its wage demands which far exceed average Canadian wage increases,” Air Canada CEO Michael Rousseau said in the statement.

Air Canada and Air Canada Rouge operate close to 670 daily flights on average and carry more than 110,000 passengers, according to the company.

“A gradual shutdown is required because it is the only responsible way to manage such a labour disruption for customers and employees alike,” the Montreal-based airline said.

The two sides have been in negotiations for 15 months. The primary sticking point is wages. Air Canada said it is hoping the government will intervene should a negotiated settelement not be reached.

Last month, the Canadian government issued an order to end work stoppages at the country’s two largest rail companies, citing concerns about the economic impact of the labour dispute. At the time, the government directed the Canada Industrial Relations Board - a tribunal that administers the nation’s labour code - to impose final binding arbitration in the dispute.

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Theophilos (Theo) Argitis

As former Ottawa Bureau Chief for Bloomberg News, Argitis brings a deep understanding of the strategic implications of the politics and policies shaping future economic and business conditions. Born in Athens and raised in Montreal, he graduated from McGill University and holds a Masters degree in economics from the University of Toronto.

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