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