Proactive Investors - Air Canada (TSX:TSX:AC.B) said the Canadian federal government should be prepared to intervene should the airline’s pilots go on strike next week, impacting at least 110,000 travellers per day.
A strike could start as early as Wednesday, September 18, however, some of Air Canada (TSX:AC.B)’s operations such as cargo and vacation packages are impacted starting Friday.
The airline said in a statement Thursday that talks with the Air Line Pilots Associations (ALPA), which represents 5,200 pilots at Air Canada (TSX:AC.B) and its budget subsidiary Air Canada Rouge have stalled.
"While we remain committed to reaching a negotiated settlement with ALPA, the federal government should be prepared to intervene if talks fail before any travel disruption starts,” Air Canada CEO Michael Rousseau said in a statement.
Air Canada has said it is facing “unreasonable wage demands” from the union, while the union claims corporate greed is hindering the negotiations as pilots are paid below-market compensation.
The airline and the union have been negotiating a new contract for the pilots for more than a year.
The union will be in a legal strike or lockout position on Wednesday after giving 72 hours' notice, which can be issued anytime after 12.01 am Eastern Time on Sunday. A notice would trigger the airline’s three-day wind-down plan before all flights are stopped on Wednesday.