WestJet pilots deal grants 24% pay raise over four years

WestJet pilots are bound for a 24 per cent pay bump over four years under an agreement-in-principle between the company and the union.

Pilots will receive a 15.5 per cent hourly pay raise this year retroactive to Jan. 1 upon ratification of the deal, according to a copy of the tentative agreement summary obtained by The Canadian Press.

It also lays out a cumulative 8.5 per cent hike to their hourly wage over the remainder of the contract, from 2024 through 2026.

Bargaining came down to the wire last week, with WestJet cancelling more than 230 flights in preparation for job action before a deal was reached hours ahead of the strike deadline on May 19.

The agreement sets a new standard for labour gains in Canadian aviation, says consultant Rick Erickson.

“That’s a pretty substantive boost” — particularly this year’s 15.5 per cent pay hike — said Erickson, managing director of R.P. Erickson and Associates. “You can bet that Air Canada’s pilot union will be looking at this very, very closely,” as well as other groups such as flight attendants.

Flight crews at the country’s biggest carrier may soon be in bargaining themselves. In a letter to members this month, the Air Canada Pilots Association said workers must decide by May 29 whether to stick with their 10-year collective agreement inked in 2014 or opt to start full negotiations ahead of time this year.

The WestJet deal could also make it tougher for budget airline competitors Flair Airlines and Lynx Air to retain pilots, even as they gain an edge on labour costs.

“’Does it make sense for me to stay here where I am? Or should I move over to one of the majors where I’ll get paid better for it but have completely different working circumstances?’” Erickson asked, paraphrasing pilots who would have higher compensation but lower seniority — and thus worse scheduling options — on arrival at a large airline.

Nonetheless, the higher compensation cost that WestJet managers now have to contend with amid a competitive domestic and cross-border market “has to worry them enormously,” he added.

The summary of the tentative agreement also stipulates the “integration of Swoop flight operations into WestJet mainline” starting this fall, with “full integration no later than October 2024.”