Air Canada and the union representing more than 5,200 pilots have reached a last-minute tentative deal in their labour dispute, averting a strike that could have disrupted travel plans for thousands of passengers.
In a statement on Sunday, Air Canada said that a new tentative, four-year agreement reached with the Air Line Pilots Association (ALPA) will be put to a ratification vote, which is expected to be completed over the next month.
Until then, flights “will continue to operate as normal,” Air Canada said.
“The new agreement recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline,” the carrier added.
News of the preliminary deal came shortly after midnight on Sunday when Air Canada or the ALPA were due to issue a 72-hour strike or lockout notice if no settlement was reached.
ALPA said the four-year deal provides pay raises, improves work rules and retirement benefits.
The terms of the preliminary agreement have not been publicly shared, but a source familiar with the details of the tentative deal tells Global News, pilots will get an approximately 41.7 per cent cumulative pay increase over four years.
The pay raise will back date to Sept. 30, 2023, with an average 26 per cent increase, followed by four per cent increments every year until 2026, the source said.
If the tentative agreement is ratified, ALPA said it will generate approximately an additional $1.9 billion of value for Air Canada pilots over four years.
“While it has been an exceptionally long road to this agreement, the consistent engagement and unified determination of our pilots have been the catalyst for achieving this contract,” first officer Charlene Hudy, chair of
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