Business groups urge Ottawa to prevent Air Canada pilots strike

Around 100 business groups on Wednesday urged Ottawa to prevent a strike by Air Canada pilots, saying a stoppage would disrupt supply chains and spoil Canada's reputation as a reliable partner.

Air Canada said on Monday it was finalizing plans to suspend most of its operations as soon as talks with the pilots' union were nearing an impasse over "inflexible" wage demands. The union says the airline needs "to get serious at the bargaining table."

In a letter to Labour Minister Steven MacKinnon, the groups noted he had stepped in quickly last month to halt a stoppage at the country's two main rail companies, forcing employees back to work and imposing binding arbitration.

"The federal government needs to take decisive action. The impacts of a labor disruption at Air Canada will ripple throughout the economy," they said.

"Should the parties not come to a negotiated agreement, 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."

A strike could start as soon as Sept 18. In a statement, MacKinnon's office said Ottawa believed in the collective bargaining process.

Air Canada and its low-cost subsidiary, Air Canada Rouge, together operate nearly 670 flights per day. A shutdown could affect 110,000 passengers daily.

"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 warned. A strike "will reinforce a growing perception that Canada is not a reliable trading partner."