Air Canada’s pilots have ratified a new four-year employment contract with the Montreal-based airline, ending a lengthy dispute that last month involved threats of a strike.

Under the deal, pilots will receive raises of roughly 42% over four years, including an immediate 26% bump followed by annual 4% raises for three years, according to the contract’s terms. 

The Air Line Pilots Association (ALPA) says members of its Air Canada pilot group voted to approve the deal by a 67% margin, with 99% of eligible pilots casting ballots.

The contract, which covers some 5,200 pilots at Air Canada and its discount affiliate Rouge, takes effect immediately, with a retroactive start date of 30 September. The agreement runs through 29 September 2027, Air Canada says.

Air Canada A220-300

Source: Air Canada

“We are very pleased this new collective agreement has been approved by our pilot group. The agreement is mutually beneficial and it will keep our pilots the best-compensated in Canada,” says the airline’s chief executive Michael Rousseau. “The agreement gives our company flexibility and creates a framework for future growth of the airline and its network.”

ALPA says the contract provides pilots “with significant improvements to compensation… and quality of life”.

“This agreement helps restore what Air Canada pilots have lost over the past two decades and creates a strong foundation from which to build,” adds Charlene Hudy, chair of ALPA’s Air Canada work group.

Neither the airline nor ALPA have disclosed contract details. They did not respond to requests for more information.

Air Canada and the union on 15 September agreed to the deal that pilots have now approved. At that time, ALPA said the then-tentative terms would provide roughly C$1.4 billion in additional “value for Air Canada pilots over the course of the agreement”.

The tentative agreement headed off a strike that threatened to massively disrupt Air Canada’s operation.