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Entry-level pay a potential stumbling block in Air Canada deal

Pilots expected to vote on tentative agreement next month
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Air Canada pilots arrive for an informational picket at Vancouver International Airport in Richmond, B.C., on Tuesday, August 27, 2024. Low levels of entry-level pay laid out in the tentative deal between Air Canada and its pilots amount to a potential stumbling block ahead of a union vote on the agreement. THE CANADIAN PRESS/Darryl Dyck

Low entry-level pay in the tentative deal between Air Canada and its pilots could be a stumbling block ahead of a union vote on the agreement, some aviators and experts say.

While the tentative agreement含羞草研究社檚 cumulative 42 per cent wage hike over four years applies to all flight crew 含羞草研究社 a big topline gain after a decade of two per cent annual raises 含羞草研究社 many could still feel left out of the windfall.

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 fully scrap the so-called 含羞草研究社渇ixed rate含羞草研究社 provision, where earnings stay flat regardless of the type of aircraft flown. (Typically, wages increase with the size of the plane.) But the proposed deal announced Sunday would merely cut the four-year period of lower pay to two years, according to a copy of the contract summary obtained by The Canadian Press.

Even in years three and four, wages would be substantially lower than in year five. The hourly rate jumps by up to 39 per cent in the fifth year, a far greater leap than in any other period, the term sheet shows.

On the assumption that pilots work roughly 75 hours per month 含羞草研究社 a common baseline in the industry 含羞草研究社 newer recruits currently earn between $55,000 and $77,000 per year. Under the would-be agreement, that range would rise to between $75,700 and $134,000 versus nearly $187,000 in year five, and more than $367,000 for an experienced captain flying a Boeing 777.

Experts say as many as 2,000 of the carrier含羞草研究社檚 roughly 5,200 active pilots may earn entry-level wages following a recent hiring surge. Many come on board after lengthy careers at other airlines, rather than straight out of flight school.

After averting a strike this week, some pilots worry that 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.

One Air Canada captain who said he was not authorized to speak publicly on the matter said newer colleagues had highlighted that criticism, but he hoped they would assess the contract in its entirety, from scheduling to pensions and health benefits.

Some Canadian carriers offer higher pay to junior flight officers but no pension plan, noted the pilot.

Another captain said that if resistance to the deal gathers momentum, it will stem mainly from the relatively low pay for recent hires.

An online pilot forum appeared to show signs of frustration in the ranks.

One user含羞草研究社檚 post complained the tentative agreement confirms Air Canada as 含羞草研究社渢he captain含羞草研究社檚 airline含羞草研究社 含羞草研究社 rather than a carrier ideal for younger aviators. Another claimed that a dearth of quality-of-life improvements means that 含羞草研究社渁 no vote is expected and even desired.含羞草研究社 A third said the contract failed to fix the 含羞草研究社渂ottom of the scale.含羞草研究社

含羞草研究社淚 would be kind of pissed that I have to work until year three and year four to get some recognition of differentiation by aircraft type,含羞草研究社 said John Gradek, who teaches aviation management at McGill University.

含羞草研究社淵ou含羞草研究社檙e still discriminating against the junior pilots,含羞草研究社 he said. 含羞草研究社淭he rank and file appear to be upset that it含羞草研究社檚 still there.含羞草研究社

Air Canada declined to comment on the provisions of the contract, but said it recognizes the pilots含羞草研究社 contributions.

含羞草研究社淲e have an agreement with and endorsed by the union negotiating committee and the MEC (master executive council), and now they will present and explain it to the membership prior to the vote,含羞草研究社 said spokesman Peter Fitzpatrick.

The union含羞草研究社檚 Air Canada contingent said the agreement would generate about $1.9 billion in additional value for pilots.

含羞草研究社淚n addition, the agreement addresses other key issues, including work rules, retirement and overall quality-of-life benefits, while helping to close the gap in wages between Canadian pilots and their American counterparts,含羞草研究社 the executive committee said in an email.

Before the ratification vote takes place, the Air Line Pilots Association will present the fleshed-out agreement 含羞草研究社 yet to be completed as of Wednesday evening 含羞草研究社 in a series of roadshows and virtual townhalls for members.

Duncan Dee, former chief operating officer at Air Canada, said the smaller starter salary reflects training costs for pilots when they switch to a new plane type.

含羞草研究社淚f they move from a narrow-body to a wide-body or from a Boeing to an Airbus, there含羞草研究社檚 a training component to that move which the company pays for,含羞草研究社 he said. 含羞草研究社淭here含羞草研究社檚 a huge training cost for airlines when they do that.含羞草研究社

He also noted the 42 per cent pay hike marks a large step up from what WestJet pilots notched last year, when they secured a 24 per cent wage bump over four years.

South of the border, pilots at Delta Air Lines, United Airlines and American Airlines in 2023 reached agreements that included four-year pay boosts ranging from 34 per cent to 40 per cent.

Dee said a fixation on the first few years of decades-long flying careers at Air Canada would be 含羞草研究社渕isplaced.含羞草研究社

含羞草研究社淭he focus should rightfully be on the totality,含羞草研究社 he said.

含羞草研究社淭he onus is now on the bargaining committee who negotiated this deal to explain themselves to their membership to justify how they were able to come to this deal.含羞草研究社





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