Air Canada Pilot Talks Reach Critical Impasse; Government Urged to Intervene

Air Canada and its pilots have reached a crucial negotiation impasse, with the airline urging the government to be ready to intervene. Business leaders warn of significant economic disruptions if a work stoppage occurs. Federal Labor Minister has advised both parties to achieve a deal without government intervention.

Canada's largest airline, Air Canada, and business leaders on Thursday urged the federal government to intervene in labor talks with its pilots to avoid a potential shutdown. However, the labor minister emphasized that both sides should negotiate a deal.

Air Canada spokesman Christophe Hennebelle stated that while the airline is committed to negotiations, it is faced with wage demands from the Air Line Pilots Association that it cannot meet. The union representing 5,200 pilots argues that Air Canada continues to post record profits while expecting substandard compensation for its pilots.

The pilots have been in contract talks for over a year, seeking wages competitive with their U.S. counterparts. A 72-hour strike or lockout notice could be issued starting Sunday, potentially leading to a full work stoppage as early as Sept. 18. Numerous business groups convened in Ottawa calling for binding arbitration to prevent the economic disruption a shutdown would cause.

(With inputs from agencies.)