By Nia Williams and Rajesh Kumar Singh
(Reuters) – Air Canada and its pilots are locked in a standoff over a brand new labor contract and face a deadline by Sunday to achieve a deal that may avert strike motion.
WHERE DO THE TALKS STAND?
If the 2 events don’t attain an settlement by the top of Saturday, Sept. 14, they may each have the choice to difficulty both a strike or lockout discover, which might set off Air Canada’s three-day plan to wind down operations.
The airline would progressively cancel flights over three days, with an entire shutdown as early as 00:01 EDT (0401 GMT)on Wednesday, Sept. 18.
On Thursday, Air Canada CEO Michael Rousseau mentioned the airline was nonetheless dedicated to reaching a deal however accused the pilots’ union of constructing extreme wage calls for.
The union has mentioned a strike could possibly be averted if Air Canada negotiates a good settlement.
WHAT IMPACT WOULD A STRIKE HAVE?
Air Canada and its low-cost Air Canada Rouge subsidiary collectively function almost 670 flights per day, and a shutdown might have an effect on 110,000 passengers each day in addition to freight carriage.
It’s Canada’s largest airline, flying to greater than 180 airports world wide. The strike may even doubtless end in fewer flights for American vacationers because the airline flies passengers from U.S. cities to Europe and Asia by means of its Canadian hubs.
In a research notice, Desjardins economists estimated a two-week pilot strike might end in a lack of round C$1.4 billion ($1.03 billion) to Canada’s actual GDP in September, which means each day losses of roughly C$98 million.
A spokesperson for Air Canada mentioned as soon as the airline begins implementing its wind-down plan, it could trigger days and weeks of disruptions.
Air Canada estimates it may possibly take near eight hours for its upkeep staff to have every plane prepared for a return to service. Which means it’s going to take 4 to 5 days to carry all plane again into service.
WHAT ARE THE ISSUES INVOLVED THE DISPUTE?
Air Canada’s 5,400 pilots are demanding wage charges that would cut the pay hole with their counterparts at main U.S. carriers comparable to United Airways.
Pilots at U.S. airways have negotiated hefty pay raises in new contracts up to now two years, helped by a journey increase and staffing shortages. United’s new pilot contract, for instance, included pay will increase of about 42%.
Consequently, some United pilots now earn 92% greater than their counterparts at Air Canada, in accordance with knowledge from the Air Line Pilots Affiliation, which represents the service’s pilots. In 2013, the pay hole was simply 3%.
The affiliation says Air Canada pilots are working underneath pay charges and quality-of-life provisions negotiated in 2014.
Rousseau mentioned Air Canada had provided a wage enhance of greater than 30%, in addition to improved pension and well being advantages within the new contract.
WILL THE GOVERNMENT INTERVENE?
Prime Minister Justin Trudeau mentioned on Friday the federal government wouldn’t intervene and supposed as an alternative to stress either side to avert a strike.
On Thursday, Air Canada took the weird step of claiming the federal authorities needs to be able to step in to move off a strike. Whereas Ottawa has intervened a number of instances in labor disputes over the previous couple of many years, it solely did so after stoppages have begun, not earlier than.
Federal Labour Minister Steven MacKinnon has broad powers to deal with disputes and final month intervened inside 24 hours to finish a stoppage on the two largest rail corporations, Canadian Pacific (NYSE:) Kansas Metropolis and Canadian Nationwide Railway (TSX:).
That transfer was denounced by unions and criticized by the federal New Democratic Get together, which has helped maintain Canada’s minority Liberal authorities in energy by means of a deal providing automated assist. Earlier this month NDP chief Jagmeet Singh withdrew that assist.
WHAT HAPPENS IF MY FLIGHT IS CANCELED?
If Air Canada cancels a flight due to a strike by its personal workers, the airline should supply to rebook passengers freed from cost on the subsequent accessible flight provided by any service, or supply a refund and transportation to return passengers to their level of origin.
Air Canada has provided versatile journey waivers for passengers scheduled to fly Sept. 15-23. The airline has mentioned additionally it is working with different carriers to safe seats for purchasers to mitigate the impression of its flight cancellations.
Nonetheless, it suggested prospects to just accept refunds or future journey credit score as seats on different airways are anticipated to be restricted.
Underneath Canada’s airline passenger safety rules, prospects won’t be entitled to money compensation for bills incurred because of delayed or canceled flights because of labor disruption if they’re flying inside Canada. Passengers touring internationally could also be entitled to compensation.
($1 = 1.3580 Canadian {dollars})