Charlene Hudy, who heads the Air Canada division of the Air Line Pilots Association, informed her colleagues during a virtual town hall on Friday that she would have “no choice but to resign” if they reject the tentative contract.
“A negative vote from the membership would clearly signal to the public, media, government, and the company that I no longer represent your interests,” she stated during a subsequent question-and-answer session. The Canadian Press has verified her remarks with two pilots.
“Remaining in my position would not be in your best interest,” Hudy added.
The agreement, finalized last weekend after over a year of negotiations, successfully prevented a strike that could have resulted in approximately 670 flight cancellations and impacted 110,000 passengers daily.
The contract would provide the airline’s 5,400 pilots with a total wage increase of nearly 42 percent over four years. This increase surpasses the significant raises achieved last year by pilots at the three largest U.S. airlines, where pay increases ranged from 34 to 40 percent, although starting from a higher initial salary.
Despite the impressive overall figure, the agreement has drawn criticism from some pilots, particularly newer members who are dissatisfied with the persistent wage disparity between them and their more seasoned counterparts.
Warnings of resignation from union leaders are not uncommon and are intended to emphasize the advantages of a tentative agreement, according to Michael Bjorge, a history professor at Dalhousie University specializing in industrial relations.
“In negotiations, especially after prolonged discussions, representatives often assert, ‘this is the best we can achieve,’ and they genuinely believe that,” Bjorge remarked.
In practice, one cannot truly ascertain the potential outcomes until they reach their utmost limits.
Under the existing contract, pilots receive significantly lower compensation during their initial four years with the company, after which they experience a substantial salary increase beginning in the fifth year.
Some employees have advocated for the complete elimination of the "fixed rate" provision, which maintains stagnant earnings regardless of the aircraft type operated. Typically, salaries rise with the size of the aircraft. However, the proposed agreement revealed on September 15 would only reduce the duration of the lower pay period from four years to two, as per a document obtained by The Canadian Press.
Even during the third and fourth years, salaries would remain considerably lower than in the fifth year. The hourly wage sees an increase of nearly 40 percent in the fifth year, representing a more significant jump than in any other timeframe, according to the agreement.
Assuming pilots work approximately 75 hours per month—a standard benchmark in the industry—newer pilots would earn between $75,700 and $134,000, compared to nearly $187,000 in the fifth year, and over $367,000 for a seasoned captain operating a Boeing 777.
Experts indicate that more than a third of the airline's approximately 5,200 active pilots may be receiving entry-level salaries following a recent surge in hiring. Many of these new hires come from extensive careers at other airlines rather than directly from flight school.
Considerations regarding scheduling and quality of life will also play a crucial role in pilots' decisions as they prepare for a ratification vote expected in the coming weeks.
“When they first begin their careers, it often coincides with starting families. If one parent is away for extended periods, it can be quite challenging for families,” Bjorge noted.