Leading business groups ask Liberals to send Air Canada pilot dispute to binding arbitration

Dozens of Canadian business associations across the country have signed a letter urging the Liberal government to prevent Air Canada pilots from striking by sending the labour dispute to binding arbitration. 

The letter — which was signed by the Canadian Chamber of Commerce, the Retail Council of Canada, Food Producers of Canada and the Canadian Toy Association, among others — warns a strike would be “devastating” for the economy.

“The federal government must … be prepared to act in advance to prevent yet another damaging disruption by referring the matter to binding arbitration where a neutral arbitrator can resolve any outstanding issues,” the letter says. 

The letter says the threat of a pilots’ strike so soon after the Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) labour disruption would cripple Canada’s reputation.

“If Canadian businesses are unable to deliver our goods to market on time, our international partners will begin to seek permanent alternatives,” the business groups said Wednesday.

Earlier this week, Air Canada issued a statement saying it was finalizing plans to suspend most of its operations as talks between the company and the Air Line Pilots Association (ALPA), which represents more than 5,200 pilots, remain unresolved.

The airline said that beginning on Sept. 15, the ALPA could issue a 72-hour strike notice or the airline could announce a 72-hour lock-out, triggering a wind-down plan affecting 110,000 passengers daily.

In the statement, Air Canada’s president and CEO Michael Rousseau said “there is still time to reach an agreement … provided ALPA moderates its wage demands.”

Poilievre backs pilots in dispute

The business groups say an Air Canada labour disruption would prevent the “import and export of critical, time-sensitive goods such as vaccines and medical supplies, agriculture and perishable food products, and parts and machinery for small and medium sized Canadian manufacturers.”

“Radioactive isotopes, which are crucial for cancer treatments, are shipped via Air Canada Cargo domestically and internationally due to their 48-hour lifespan. A disruption in this service, however short, would be devastating, as no other means of transport can meet the stringent time requirements for these products,” the letter says. 

Labour Minister Steven MacKinnon referred last month’s railway labour disruption to the Canada Industrial Relations Board (CIRB) for binding arbitration.

At the Liberals’ caucus retreat in Nanaimo, B.C, MacKinnon was asked if he would send this dispute to arbitration. He said he would not “get into hypotheticals” and was “committed to the bargaining process.”

“That process in this case has yielded significant progress in terms of solving the issues,” he said, adding that while significant issues remain unresolved, he sees “forward momentum” in the talks. 

“There’s no reason for these parties not to be able to achieve a collective agreement. I’m asking them to knuckle down and get the deal done,” he said.

MacKinnon’s decision on the rail disruption prompted criticism from NDP Leader Jagmeet Singh, who accused the federal government of undermining workers.

“The Liberals’ actions are cowardly, anti-worker and proof that they will always cave to corporate greed, and Canadians will always pay for it,” he said in a media statement.

In Ottawa on Wednesday, Conservative Leader Pierre Poilievre said he would not support sending the Air Canada contract talks to binding arbitration and urged the company to bargain in good faith. 

“U.S. pilots make a lot more money and pay a lot less taxes and pilots at Air Canada are simply trying to make up for the ground they lost as the result of the government-caused inflation,” he said. 

“We’re not going to support pre-empting those negotiations. We stand with the pilots and their right to fight for a fair deal.”