Air Canada said Thursday the federal government will need to step in and order binding arbitration if the airline can’t reach a deal with the pilots’ union, warning a strike would upset travel plans for least 110,000 travellers every day.
A statement from the company said talks with the Air Line Pilots Association (ALPA), which represents 5,200 pilots at Air Canada and Air Canada Rouge, are currently stalled.
“Government direction for binding arbitration will be necessary to avoid a major disruption of air travel,” if talks don’t start moving, it said.
“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,” Michael Rousseau, Air Canada’s president and CEO, wrote in the statement.
“So, while we remain committed to reaching a negotiated settlement with ALPA, the federal government should be prepared to intervene if talks fail before any travel disruption starts.”
Airline spokesperson Christophe Hennebelle previously said Air Canada is committed to negotiations but faces “unreasonable wage demands” from the pilots union that it can’t meet.
Canada’s largest airline and the union have in negotiations for more than a year without result. Both sides will be in legal strike or lockout positions on Wednesday after giving 72 hours’ notice.
Air Canada could begin suspending flights as early as Sunday, as contract dispute talks continue between the airline and its pilots. Both sides remain at the bargaining table but are putting contingency plans in place in the event of a strike. CBC’s Chris Glover visited the union’s strike headquarters.
A shutdown would stop roughly 670 flights a day, disrupting travel for tens of thousands of passengers and interfering with connecting flights with airlines from around the world. Air Canada has said it will start cancelling flights on Friday and would gradually shut down before the Wednesday deadline in preparation for job action.
The union has said it’s corporate greed that is holding up talks, as Air Canada continues to post record profits while expecting pilots to accept below-market compensation.
Federal Labour Minister Steven MacKinnon said Wednesday that there’s no reason a deal can’t be reached and said both sides should “knuckle down” to make it happen.
Numerous business groups convened in Ottawa on Thursday calling for action — including binding arbitration — to avoid the economic disruptions a shutdown of the airline would cause.
Arbitration “can help bring the parties to a successful resolution and avoid all the potential impacts we’re here to talk about today,” said Candace Laing, president of the Canadian Chamber of Commerce, during a news conference.
“Canada cannot afford another major disruption to its transportation network. A labour disruption at Air Canada would ripple through our economy,” said Goldy Hyder, chief executive of the Business Council of Canada, in a statement.
NDP Leader Jagmeet Singh said Thursday morning the party would not support efforts to force pilots back to work.
“We’re going to send a clear message again that we are opposed to Justin Trudeau and the Liberals, or any government, interfering with workers,” said Singh.
“If there’s any bills being proposed on back to work legislation, we’re going to oppose that.”
Conservative Leader Pierre Poilievre said Wednesday that Air Canada should negotiate in good faith with its pilots.
“We’re not going to support pre-empting those negotiations. We stand with the pilots and their right to fight for a fair deal, good wages.”