Low pay for junior Air Canada pilots poses possible hurdle to proposed deal

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.

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 agreement's cumulative 42 per cent wage hike over four years applies to all flight crew — a big topline gain after a decade of two per cent annual raises — 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 “fixed rate” 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 — a common baseline in the industry — 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 carrier’s 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.