Sept 4 (Reuters) - Air Canada ( ACDVF ) has offered its

pilots a 30% pay hike in an effort to avert strike action,

Bloomberg News reported on Wednesday, citing people familiar

with the matter.

Pilots at Canada's largest carrier would receive a minimum

20% increase in pay up front, which would be followed by annual

hikes over three years, the report said.

The agreement, if reached, will avert a strike that is set

to begin as early as Sept. 17 and would lead to travel

disruptions across Canada.

Air Canada ( ACDVF ) declined to comment on the specifics of the labor

negotiations but said it was open to any solution to reach a

reasonable settlement with its pilot union, including

arbitration.

More than 5,000 union-represented pilots have been

advocating for unprecedented wage increases to close the salary

disparity with their higher-earning U.S. peers, who achieved

record contracts in 2023 amid pilot shortages and robust travel

demand.

Air Canada's ( ACDVF ) pilots have previously said the current pay

rates for aviators at U.S. rival Delta Air Lines ( DAL ) are up

to 45% higher than the Canadian carrier's hourly pay rates.

The union and the airline had entered into a three-week

cooling off period, which is mandated by Canadian law, and began

on Aug. 27.

That came after the end of federal conciliation in contract

negotiations with the pilots union.