Air Canada strike would be ‘devastating’: business groups urge Feds to intervene

Canadian business groups are urging the federal government to intervene in the ongoing labour dispute between Air Canada and its pilots by referring the matter to binding arbitration.

With the potential for a strike starting as early as September 15, business leaders warn that disruptions could harm the economy, particularly the transport of critical goods such as medical supplies and manufacturing components.

The group called the potential disruption to air service “alarming, given the wide-reaching implications it would have on Canadians, the nation’s economy, supply chains, and our global reputation.”

The letter was signed by 100 business groups including the Canadian Automobile Dealers Association, Food Producers of Canada, Restaurants Canada, and various chambers’ of commerce and boards of trade.

Air Canada preparing for ‘orderly shutdown’

Air Canada has announced that it is preparing for an “orderly shutdown” of most operations if negotiations with the Air Line Pilots Association (ALPA) do not result in an agreement.

"We are publicizing our plans to give the more than 110,000 people who travel with us each day greater certainty and the opportunity to reduce the risk of being stranded by using our goodwill policy to change or defer imminent travel at no cost," Michael Rousseau, president and CEO of Air Canada said in a September 9 press release.

The airline has highlighted that negotiations have reached an impasse over ALPA's wage demands. "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," Rousseau added. If no agreement is reached, the airline has warned that flight cancellations could begin, affecting operations globally.

Politicians weigh in on looming Air Canada pilot strike

Pierre Poilievre, leader of the Conservative Party, has expressed support for the pilots, stating that they deserve fair compensation amid rising inflation: "U.S. pilots make a lot more money and pay a lot less taxes and pilots at Air Canada are simply trying to make up for the ground they lost as the result of the government-caused inflation," he said in a CBC News report. 

"We're not going to support pre-empting those negotiations. We stand with the pilots and their right to fight for a fair deal."

Meanwhile, Labour Minister Steven MacKinnon, who last month sent the rail worker labour dispute to the Canada Industrial Relations Board (CIRB) for arbitration, told reporters he would not "get into hypotheticals" and was "committed to the bargaining process," CBC News reported.

Air Canada noted that should a shutdown occur, it is prepared to resume operations swiftly once a settlement is reached, but it may take "up to 7 to 10 days" to fully restore regular service.