November 21, 2024
Low pay for junior Air Canada pilots poses possible hurdle to proposed deal #CanadaFinance

Low pay for junior Air Canada pilots poses possible hurdle to proposed deal #CanadaFinance

CashNews.co

MONTREAL — One expert says entry-level pay under the tentative deal between Air Canada and its pilots could be a stumbling block ahead of a union vote on the agreement.

Under their current contract, pilots earn far less in their first four years at the company before enjoying a big wage increase starting in year five.

The Air Line Pilots Association had been pushing to scrap the so-called “fixed rate” provision entirely.

But according to a copy of the contract summary obtained by The Canadian Press, the proposed deal announced Sunday would merely cut the four-year period of lower pay to two years.

John Gradek, who teaches aviation management at McGill University, says as many as 2,000 of Air Canada’s roughly 5,200 active pilots may earn entry-level wages following a recent hiring surge.

After the airline averted a strike this week, Gradek says the failure to ditch the pay grade restrictions could prompt pushback from rank-and-file flight crew and jeopardize the deal, which is up for a vote next month.

This report by The Canadian Press was first published Sept. 18, 2024.

Companies in this story: (TSX:AC)

Christopher Reynolds, The Canadian Press