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Air Canada (ACDVF) Continues to Grapple With Pilot Unrest
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Pilots of Air Canada (ACDVF - Free Report) staged a protest at Toronto's Pearson airport demanding higher pay, job security and better working conditions. Talks are currently ongoing between the company and the union. The Air Line Pilots Association represents or ALPA represents more than 5,000 pilots.
With no breakthrough yet achieved, the pilots demonstrated at the Pearson airport. Talks have been ongoing since Jun 2023. Air Canada's pilots have received a 2% wage increase per year since 2014. The contract ended on Sep 29. The union believes that the ongoing talks will continue throughout October, leaving them without a contract.
Pilots of ACDVF, currently sporting a Zacks Rank #1 (Strong Buy), are naturally pressing for a new pay-related contract, given that its counterparts in the United States have recently inked lucrative deals. In August, American Airlines (AAL - Free Report) inked a four-year pay-related deal with its pilots. The dealis valued at $9.6 billion over its tenure.
Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. The deal also has provisions for retroactive pay for the first four months of 2023.
In March, Delta Air Lines’ (DAL - Free Report) pilots ratified a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay-hike over the next four years. With North American airlines grappling with pilot shortage, the bargaining power of this group has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows.
Per Charlene Hudy, Chair of the governing body for ACDVF’s pilots’ union, "We have quite a few issues we need to address in terms of career progression, our job security, and aviation safety. We have to close the growing wage gap between us and our American counterparts."
Mainly due to the pilot unrest, shares of Air Canada have shed 16.2% of their value in a month’s time, compared to its industry’s 11.9% fall.
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Air Canada (ACDVF) Continues to Grapple With Pilot Unrest
Pilots of Air Canada (ACDVF - Free Report) staged a protest at Toronto's Pearson airport demanding higher pay, job security and better working conditions. Talks are currently ongoing between the company and the union. The Air Line Pilots Association represents or ALPA represents more than 5,000 pilots.
With no breakthrough yet achieved, the pilots demonstrated at the Pearson airport. Talks have been ongoing since Jun 2023. Air Canada's pilots have received a 2% wage increase per year since 2014. The contract ended on Sep 29. The union believes that the ongoing talks will continue throughout October, leaving them without a contract.
Pilots of ACDVF, currently sporting a Zacks Rank #1 (Strong Buy), are naturally pressing for a new pay-related contract, given that its counterparts in the United States have recently inked lucrative deals. In August, American Airlines (AAL - Free Report) inked a four-year pay-related deal with its pilots. The dealis valued at $9.6 billion over its tenure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. The deal also has provisions for retroactive pay for the first four months of 2023.
In March, Delta Air Lines’ (DAL - Free Report) pilots ratified a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay-hike over the next four years. With North American airlines grappling with pilot shortage, the bargaining power of this group has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows.
Per Charlene Hudy, Chair of the governing body for ACDVF’s pilots’ union, "We have quite a few issues we need to address in terms of career progression, our job security, and aviation safety. We have to close the growing wage gap between us and our American counterparts."
Mainly due to the pilot unrest, shares of Air Canada have shed 16.2% of their value in a month’s time, compared to its industry’s 11.9% fall.
Image Source: Zacks Investment Research