**Air Canada Flight Attendants Reject Contract Offer, Labor Dispute Continues**
Air Canada’s flight attendants, numbering over 10,000, have overwhelmingly voted against the airline’s recent contract proposal, prolonging a labor dispute that previously resulted in a temporary strike last month. In August, flight staff initiated a three-day strike that led to the cancellation of more than 2,000 flights before a tentative agreement was reached. However, a staggering 99.1% of union members voted against the contract, as reported in a statement on Saturday.
Following the vote, both parties will return to mediation, which means that a strike or lockout is not anticipated at this time. The rejected contract included a total compensation increase of approximately 40% over four years, encompassing wages, pension, and benefits, along with new provisions for ground pay duty. Despite these offerings, cabin crew members found the terms inadequate. The union indicated that 94.6% of its members participated in the voting process.
Air Canada had previously stated that if the agreement was not ratified, the wage component would be sent to mediation and potentially arbitration. In a statement following the vote, the airline reaffirmed its commitment to the mediation and arbitration process, assuring that operations would continue without interruption.
The proposed four-year contract featured wage increases ranging from 8% to 12%, retroactive to April 1, followed by annual raises of 3%, 2.5%, and 2.75% in subsequent years. Currently, Air Canada flight attendants are compensated only while the aircraft is in motion, a standard practice in the industry that they seek to change. The new contract suggested offering 60 to 70 minutes of pre-flight pay, depending on aircraft size, at half the usual hourly rate, with plans to increase this to 70% of the hourly rate over time.
In a notable industry shift, Delta Air Lines became the first U.S. carrier to compensate flight attendants during boarding time in 2022. Major U.S. airlines have negotiated multi-year contracts with their crews over the past 18 months, with some securing boarding pay in their agreements. United Airlines is still in negotiations.
While Air Canada has not disclosed the specific value of its compensation offer, analysts estimate that the new contract could add over C$600 million (approximately $434 million) to the airline’s costs during the contract period. Last year, Air Canada spent C$4.9 billion on wages, salaries, and benefits, which accounted for about 23% of its operating costs.
**FAQ**
**What are the main issues causing the labor dispute at Air Canada?**
The labor dispute at Air Canada primarily revolves around the flight attendants’ rejection of a contract that they deemed insufficient in terms of compensation and working conditions, particularly regarding pay during boarding and ground duties.
