The Air Line Pilots Association has been in talks with Air Canada for 15 months over salary increases. (Christinne Muschi/The Canadian Press)
The head of the Air Canada pilots union has announced she will step down if members reject a proposed agreement with the airline. This announcement comes as pilots weigh whether to accept substantial salary increases or push for better terms.
Charlene Hudy, who leads the Air Canada division of the Air Line Pilots Association, made the statement during a virtual town hall. She informed union members that she would "have no choice but to resign" if they vote against the tentative contract.
"If the membership rejects this agreement, it would signal to the public, media, government, and company that I no longer represent your interests," Hudy said during the Q&A following the online meeting.
A copy of Hudy's remarks, obtained by The Canadian Press and confirmed by two pilots, revealed her intention to step down if the deal is turned down. "Remaining in this position would not benefit you," she added.
The tentative agreement, reached after over a year of negotiations, prevented a strike that could have disrupted 670 flights and impacted 110,000 passengers daily. The proposed deal includes a 42% wage increase over four years for the airline’s 5,400 pilots, surpassing the pay raises secured by pilots at the three largest U.S. airlines last year, which ranged between 34% and 40%.
Despite the significant pay raise, some pilots, particularly newer hires, have voiced concerns about the persistent pay disparity between junior and senior pilots.
Michael Bjorge, an industrial relations expert at Dalhousie University, noted that union leaders often make such warnings during negotiations. “After a long period at the bargaining table, leaders might genuinely believe this is the best deal they can get,” Bjorge said. “But in reality, you never know until you push the limits.”
One key issue is the wage structure for newer pilots. Currently, pilots earn much less in their first four years with the company, before receiving a significant pay bump in year five. Some employees had pushed to eliminate this "fixed rate" system entirely, where pay remains flat regardless of the type of aircraft flown. However, the proposed contract only reduces the lower pay period from four years to two. In years three and four, pilots would still earn considerably less than in year five, where wages rise by almost 40%.
Based on a 75-hour work month, newer pilots would make between $75,700 and $134,000, while fifth-year pilots would earn nearly $187,000. Experienced captains flying larger planes like the Boeing 777 could earn more than $367,000 annually.
Other contract provisions, including scheduling and work-life balance, will also play a role as pilots prepare to vote on the agreement in the coming weeks.
