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Entry-level pay a potential stumbling block in Air Canada deal

Pilots expected to vote on tentative agreement next month
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Air Canada pilots arrive for an informational picket at Vancouver International Airport in Richmond, B.C., on Tuesday, August 27, 2024. Low levels of entry-level pay laid out in the tentative deal between Air Canada and its pilots amount to a potential stumbling block ahead of a union vote on the agreement. THE CANADIAN PRESS/Darryl Dyck

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 agreement91裸聊视频檚 cumulative 42 per cent wage hike over four years applies to all flight crew 91裸聊视频 a big topline gain after a decade of two per cent annual raises 91裸聊视频 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.

The Air Line Pilots Association had been pushing to fully scrap the so-called 91裸聊视频渇ixed rate91裸聊视频 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 91裸聊视频 a common baseline in the industry 91裸聊视频 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 carrier91裸聊视频檚 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 failure to ditch the pay grade restrictions 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.

An online pilot forum appeared to show signs of frustration in the ranks.

One user91裸聊视频檚 post complained the tentative agreement confirms Air Canada as 91裸聊视频渢he captain91裸聊视频檚 airline91裸聊视频 91裸聊视频 rather than a carrier ideal for younger aviators. Another claimed that a dearth of quality-of-life improvements means that 91裸聊视频渁 no vote is expected and even desired.91裸聊视频 A third said the contract failed to fix the 91裸聊视频渂ottom of the scale.91裸聊视频

91裸聊视频淚 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,91裸聊视频 said John Gradek, who teaches aviation management at McGill University.

91裸聊视频淵ou91裸聊视频檙e still discriminating against the junior pilots,91裸聊视频 he said. 91裸聊视频淭he rank and file appear to be upset that it91裸聊视频檚 still there.91裸聊视频

Air Canada declined to comment on the provisions of the contract, but said it recognizes the pilots91裸聊视频 contributions.

91裸聊视频淲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,91裸聊视频 said spokesman Peter Fitzpatrick.

The union91裸聊视频檚 Air Canada contingent said the agreement would generate about $1.9 billion in additional value for pilots.

91裸聊视频淚n 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,91裸聊视频 the executive committee said in an email.

Before the ratification vote takes place, the Air Line Pilots Association will present the fleshed-out agreement 91裸聊视频 yet to be completed as of Wednesday evening 91裸聊视频 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.

91裸聊视频淚f they move from a narrow-body to a wide-body or from a Boeing to an Airbus, there91裸聊视频檚 a training component to that move which the company pays for,91裸聊视频 he said. 91裸聊视频淭here91裸聊视频檚 a huge training cost for airlines when they do that.91裸聊视频

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 91裸聊视频渕isplaced.91裸聊视频

91裸聊视频淭he focus should rightfully be on the totality,91裸聊视频 he said.

91裸聊视频淭he 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.91裸聊视频





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