Deal faces scrutiny,The deal particularly by newer recruits unimpressed by experience pay gap
Union Leader’s Resignation Threat
Charlene Hudy, the head of the Air Canada pilots union, announced that she will resign if members decide not to approve a tentative deal with the airline. This adds pressure as pilots weigh the option of accepting significant salary increases or negotiating for even better terms.
Importance of the Tentative Deal
During a virtual town hall meeting, Hudy told her fellow pilots that if they vote against the proposed contract, it would show that she no longer represents them. She emphasized that staying on as leader would not be beneficial for the members.
Details of the Contract
The deal, reached after more than a year of negotiations, prevents a strike that could have resulted in around 670 flight cancellations affecting 110,000 passengers daily. It would provide the airline’s 5,400 pilots with a total pay increase of nearly 42% over four years, surpassing recent pay raises for pilots at major U.S. airlines.
Concerns Among Pilots
Despite the large salary increase, some pilots, especially newer ones, are concerned about the ongoing pay gap with more experienced colleagues. Union leaders sometimes threaten to resign to emphasize the importance of accepting a tentative agreement, according to Michael Bjorge, a history professor specializing in industrial relations at Dalhousie University.
Pay Structure Explained
Under the current contract, pilots earn lower wages in their first four years before getting a substantial pay rise in the fifth year. Some employees want to eliminate the fixed-rate pay structure, where salaries do not increase based on the size of the aircraft flown. The new proposal, announced on September 15, shortens the lower pay period from four years to two years, but even in the third and fourth years, wages would be significantly lower than in year five.
Salary Expectations
Assuming pilots work about 75 hours per month, newer recruits would earn between $75,700 and $134,000 in their first few years, compared to nearly $187,000 in the fifth year and over $367,000 for experienced captains flying a Boeing 777. Many of Air Canada’s roughly 5,200 active pilots are currently earning entry-level wages due to a recent hiring surge.
Work-Life Balance Considerations
Factors like scheduling and work-life balance will also play a role in pilots’ decisions ahead of the upcoming ratification vote. Bjorge noted that many pilots start working at a time when they may be starting families, making it challenging if one parent is away for extended periods.
