MONTREAL 鈥� 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's cumulative 42 per cent wage hike over four years applies to all flight crew 鈥� a big topline gain after a decade of two per cent annual raises 鈥� 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.
Some employees had been pushing to fully scrap the so-called 鈥渇ixed rate鈥� 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 鈥� a common baseline in the industry 鈥� 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鈥檚 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 ongoing pay disparities 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 鈥� a provision that dates back to a concession made by the Air Canada Pilots Association more than a decade ago.
An online pilot forum appeared to show signs of frustration in the ranks.
One user's post complained the tentative agreement confirms Air Canada as 鈥渢he captain鈥檚 airline鈥� 鈥� rather than a carrier ideal for younger aviators. Another claimed that a dearth of quality-of-life improvements means that 鈥渁 no vote is expected and even desired.鈥� A third said the contract failed to fix the "bottom of the scale."
鈥淚 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,鈥� said John Gradek, who teaches aviation management at McGill University.
鈥淵ou鈥檙e still discriminating against the junior pilots,鈥� he said. 鈥淭he rank and file appear to be upset that it鈥檚 still there.鈥�
Air Canada declined to comment on the provisions of the contract, but said it recognizes the pilots鈥� contributions.
鈥淲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,鈥� said spokesman Peter Fitzpatrick.
The union's Air Canada contingent said the agreement would generate about $1.9 billion in additional value for pilots.
"In 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," the executive committee said in an email.
Despite the pay disparity between flight crews at Air Canada, the deal would still see a new hire earn $87.48 per hour 鈥� more than first officers currently make in their fifth year 鈥� according to the contract summary.
Before the ratification vote takes place, the Air Line Pilots Association will present the fleshed-out agreement 鈥� yet to be completed as of Wednesday evening 鈥� 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.
"If they move from a narrow-body to a wide-body or from a Boeing to an Airbus, there's a training component to that move which the company pays for," he said. "There's a huge training cost for airlines when they do that."
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 "misplaced."
"The focus should rightfully be on the totality," he said.
"The 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."
This report by The Canadian Press was first published Sept. 18, 2024.
Companies in this story: (TSX:AC)
Christopher Reynolds, The Canadian Press
