A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
1
Table of Contents
1
2
3
4
5
Executive Summary............................................................................................................................................................................. 2
1.1
The Current Situation in Civil Aviation........................................................................................................................................................... 3
1.2
The Current Situation in the Civil Aviation Program ..................................................................................................................................... 4
1.3
Recruitment, Retention, and Compensation Practices .................................................................................................................................... 5
1.4
The Compensation Survey Results................................................................................................................................................................... 7
1.5
Conclusions ..................................................................................................................................................................................................... 9
Introduction ....................................................................................................................................................................................... 11
2.1
Objectives and Scope of the Review .............................................................................................................................................................. 11
2.2
Approach and Methodology .......................................................................................................................................................................... 14
The Context of the Review ................................................................................................................................................................ 17
3.1
A refocused and reorganized Transport Canada .......................................................................................................................................... 17
3.2
A changing regulatory environment .............................................................................................................................................................. 18
3.3
A changing labour market for licensed aviators ........................................................................................................................................... 20
3.4
The airline industry has a unique culture ...................................................................................................................................................... 23
The Current Situation in Civil Aviation ........................................................................................................................................... 26
4.1
The Airline Industry....................................................................................................................................................................................... 26
4.2
The Labour Market of Licensed Aviation Personnel ..................................................................................................................................... 27
4.3
The Civil Aviation Program (Transport Canada) ......................................................................................................................................... 28
Recruitment and Retention Practices ............................................................................................................................................... 30
5.1
Department of National Defense ................................................................................................................................................................... 30
5.2
Transport Canada ......................................................................................................................................................................................... 31
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
5.3
6
7
2
The Aviation Industry .................................................................................................................................................................................... 35
Overview of Compensation ............................................................................................................................................................... 37
6.1
The Compensation Survey ............................................................................................................................................................................. 38
6.2
Secondary Sources......................................................................................................................................................................................... 42
6.3
Industry Interviews ........................................................................................................................................................................................ 46
Conclusions ....................................................................................................................................................................................... 47
Appendices
Appendix ‘A’
Bibliography of Secondary Sources
Appendix ‘B’
Private Sector Interviews and Transport Canada Consultation List
Appendix ‘C’
List of Data Tables
Survey of Compensation Practices for Three Air Transportation Benchmark Positions
In recent years, the aviation sector has undergone significant change
1
Executive Summary
driven by economic cycles and the restructuring of the government’s
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
management of Canada’s transportation system. As a consequence,
operators in regards to compensation practices. Finally, PwC has
the role of Civilian Aviation Inspectors (CAIs) who inspect air
suggested a directional approach to assist the Department in
operators, the air navigation system, flying schools, and airports for
addressing the challenges that PricewaterhouseCooper’s review
conformity to government standards and regulations has changed.
identified in regards to the issues of recruitment, retention, and
These changes have also put some significant pressures on the ability
compensation.
3
of Transport Canada (TC) to manage recruitment and retention of its
CAI population and strengthens the perception among the CAI
population that there is a significant compensation gap between the
Department and the aviation industry.
1.1
The Current Situation in Civil Aviation
The difficulty of TC to manage recruitment and retention of CAIs
has to be examined within the perspective of the evolution of the
PricewaterhouseCoopers LLP (PwC) has thus been commissioned to
conduct a review of TC’s recruitment, retention, and compensation
practices in contrast to those practices of private operators in the
aviation sector that employ licensed aviation personnel who possess
similar certifications and qualifications required by TC of its CAI
population.
business environment of civil aviation. From our review, it should
be noted that both employment and salaries for licensed aviation
personnel in the civil aviation industry has increased rapidly.
Between 1995 and 1996 the number of pilots and co-pilots increased
by 6.0% compared to an overall increase of 2.4% for all airline
employees. During the same time period the salaries and wages for
pilots and co-pilots increased 10.3% compared to an overall increase
As part of this review PwC has conducted a secondary source
of 7.7% of all airline employees.
analysis of industry literature and databases and has undertaken
numerous interviews with senior management from private aviation
operators and the Department in the Civil Aviation Program.
Additionally, PwC has administered an industry compensation
survey to delineate the differences between TC and private sector
The higher growth in both employment and salaries for pilots in
comparison to all airline employees may be a reflection of the
increasing demand for licensed aviation personnel and the recent
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
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stagnation in the number of ‘in force’ aviation licenses in the
Operator (AO)1 distribution rates (Allocation/Strength), derived from
aviation sector. These developments can be attributed to a number
TC TIPS data, the total allocation of staffed AO’s positions for the
of trends occurring in the aviation industry. These trends include:
TC Civil Aviation Program should be at 403 inspectors while total
current strength lies at 356.5 inspectors, or at 88.5% of operational

An increase in the number of passengers carried.
levels.2 However, the TIPS data examined and our interviews with

An increase in the number of revenue passenger miles.
staff and management indicate that the level of staffing vacancies is

A greater variety of aircraft types in the fleet in air carriers.
not comparable across all regions and service lines.

An increase in the number of aircraft operators.

An increase in the number of aircraft registered.
For instance, the CBA branch is at 89.5% of operational allocation

A decline in the number of private pilot licenses.
nationally but when the specific programs within the branch are

The changing demographics of aviation license holders.
examined it was discovered that there is significant staffing shortages

An increase in the enrolment in flight schools but there are
emerging restrictions, which may affect future enrolment.

The decline in the number of military aviators.
in the large air carrier program (7th Region) which is only at 78.4%
of operational allocation. Correspondingly, when certain regions
were cross tabulated with the CBA branch, it was found that the
Ontario Region, at 81.8% of allocation, and the National Capital
Region (NCR) region, at 80.7% of allocation, were also suffering
from significant staffing shortages. In comparison, other service
1.2
The Current Situation in the Civil Aviation Program
PricewaterhouseCooper’s review of the current situation in the Civil
lines, such as aircraft maintenance and manufacturing and regulatory
services, both at 100% of allocation, and general aviation, at 94% of
Aviation Program at TC does support the management’s concerns in
regards to recruitment and retention of CAIs. According to Aircraft
1 The AO section is the classification group in which the CAI population resides in TC.
2 Allocation/Strength levels as of September 21st, 1998.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
allocation, seem to be more successful at retaining their staffing
levels at or close to
1.3
5
Recruitment, Retention, and Compensation Practices
allocation.3
Aviation employers have responded in a variety of ways to the
The allocation of staffed CAI positions is characterised by the
challenges they face in recruiting and retaining licensed aviation
following trends4:
personnel depending on the size of their operation, the segment of
the industry in which they operate, and if their operation is a

The Department is compensating for staffing vacancies partially
through the use of overtime.

TC’s AO population is a maturing workforce as reflected by age
and length of service.

There has been a departure of experienced personnel, perhaps
due to individuals reaching retirement age, between 1995 and
1998.

The departure of experienced personnel has affected some of the
regions to a greater degree than others.
The external recruitment from April 1995 to April 1998 has not
kept pace with departure levels, but there has been a recent
increase in new hires.
The Regions have been relatively more successful than the NCR
(headquarters) in recruiting candidates to fill CAI vacancies.


3 For a complete chronicle of AO distribution rates cross tabulated by region and service line
please see Appendix ‘C’.
4 For a complete chronicle of AO distribution rates cross tabulated by region and service line
please see Appendix ‘C’.
unionized. There are a number of significant and industry wide
developments which are noteworthy. These include:

A significant increase in pilot salaries. Between 1995 and 1996
salaries for pilots increased 10.3% according to Statistics
Canada’s Civil Aviation Report. According to our survey of
compensation practices, firms reported, on average, that they
expect a base salary increase of 3% in 1999 for the three
benchmarked positions. Finally, a 1998 salary survey for
business aviation reported a 6% increase in compensation for
pilots between 1997 and 1998.

An increase use of pilot retention programs. The DND, a
significant Canadian employer of pilots, has launched a retention
allowance program which rewards upwards of $75,000 for
experienced pilots. Private sector operators have offered profit
sharing schemes, better training opportunities, and performance
bonuses.

Benefits programs and the working environment have been
reviewed and enhanced. Carriers with unionized shops have
decreased the number of hours flown by pilots and typically have
benefit packages including uniform allowances, per diems, and
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
discounted travel policies. Often these policies set the standard
for other airlines that may or may not have a union.
In comparison, TC has experienced a long-term wage freeze that was
introduced by the federal government in the early 1990s for all
employees. As a result of the federal wage freeze, the salary gap with
the industry has continued to widen, even taking into consideration
the fact that TC pays overtime for its licensed aviation personnel
which is an uncommon practice in the industry. Moreover, despite a
changing business environment in the airline industry and an
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Program. This approach to human resource management is the
foremost example of how the Department distinguishes itself from its
industry counterparts and, as a result, puts TC at a competitive
disadvantage in recruiting and retaining licensed aviation personnel.
From our review it could be suggested that the service lines which
are experiencing difficulties in recruiting and retaining licensed
aviation personnel, specifically CBA, are a result of the competitive
labour forces which are occurring in the corresponding private sector
segments that those service lines regulate.
evolution of the role and the service delivery model of the
Department, TC has continued to use the same human resource
management practices around recruitment, retention, and
compensation that it has relied on in the past. Hence, it has become
increasingly difficult for TC to respond to the business cycles of the
aviation industry and to manage effectively the dynamics of the
evolving labour market for licensed aviation personnel.
Typically, the private sector compensation model for employers of
licensed aviation personnel reflect the competitive labour forces
which confront that employer based on its industry segment and the
role of the employee in question. While TC recognizes that the level
of technical expertise and complexity of the regulatory environment
differs between service lines, and hence requires different
classification levels, it does not reflect in its compensation practices
More importantly, it should be noted that not all aspects of the Civil
Aviation Program are experiencing the same level of difficulty in the
the differences in the competitive labour market that cross service
lines.
recruitment and retention of licensed aviation personnel. However,
the Department continues to use a homogenous approach to the
management of its human resources across the entire Civil Aviation
As a result, the Department removes its ability to respond to labour
market pressures to the same degree that its private sector
counterparts for the areas of the industry where the competitiveness
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
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for skilled and experienced individuals that possess the certification
Tables 1, 2 and 3 reveals that for all three benchmark positions, TC
and the qualifications required by TC is the strongest. Additionally,
is at the lower bound of the market (0th percent rank) 13 times out of
due to the narrowness of salary bands between classification levels,
21 under the correlation that we have analysed. (Three benchmark
there is a perception among inspectors in the Department that the
positions correlated against: (1) all participants, (2) by clustered tiers,
compensation practices of TC are linear and applied homogeneously
and (3) tier by tier.
throughout the Civil Aviation Program regardless of the competitive
labour forces at work. This makes it difficult for TC to promote or
The closest position of TC to a market central trend is the
encourage line staff to move across service lines or to transfer
Superintendent benchmark at the 47th percent rank of the clustered
between regions restricting the Department’s ability to best manage
Tier 3 and Tier 4 participants. However since TC policy is to pay for
and develop its workforce.
the overtime worked while the survey participants do not generally
pay for overtime, we could presume that the overall position of TC
ought to be better aligned with the market practices.
1.4
The Compensation Survey Results
The detailed results for all participants are presented in Table 1 while
Table 2 reports the survey results by clusters; the first cluster
consists of ‘tier’ 1 and of ‘tier’ 2 participants and the second cluster
consists of ‘tier’ 3 and ‘tier’ 4 participants. Table 3 presents the
clustering of participants by the four ‘tiers’ and reports on the
national exposure of TC to national competition for attracting and
retaining licensed aviation personnel.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
Table 1: Compensation Survey Results - All Participants
TC Salary
Market
TC Percent
Average
Rank
All Participants
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Table 3: Compensation Survey Results - By Tier Participants
TC Salary
Market
TC Percent
Average
Rank
Tier 1 Participants
Inspector, CAI-03
$61 338
$91 168
24%
Inspector, CAI-03
$61 338
$168 105
0%
Superintendent, CAI-04
$65 263
$99 269
30%
Superintendent, CAI-04
$65 263
$174 598
0%
$106 139
21%
Chief (Manager), CAI-05 $70 484
$175 105
0%
Chief (Manager), CAI-05 $70 484
Tier 2 Participants
Table 2: Compensation Survey Results - Clustered Participants
TC Salary
Market
TC Percent
Average
Rank
Tier 1 and 2 Participants
Inspector, CAI-03
$61 338
$106 860
0%
Superintendent, CAI-04
$65 263
$131 500
0%
Chief (Manager), CAI-05 $70 484
$121 000
0%
Tier 3 Participants
Inspector, CAI-03
$61 338
$137 483
0%
Inspector, CAI-03
$61 338
$86 133
0%
Superintendent, CAI-04
$65 263
$153 049
0%
Superintendent, CAI-04
$65 263
$85 050
0%
Chief (Manager), CAI-05 $70 484
$148 053
0%
Chief (Manager), CAI-05 $70 484
$101 750
0%
Tier 3 and 4 Participants
Tier 4 Participants
Inspector, CAI-03
$61 338
$72 642
0%
Inspector, CAI-03
$61 338
$59 151
78%
Superintendent, CAI-04
$65 263
$72 379
47%
Superintendent, CAI-04
$65 263
$59 708
100%
Chief (Manager), CAI-05 $70 484
$85 183
33%
Chief (Manager), CAI-05 $70 484
$68 616
76%
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
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Assuming that it is the practice of TC to pay 12% of base pay in
safety, and the creation of a competitive compensation and benefit
overtime and taking into account that PwC compared total pay
package that recognizes the forces of a competitive labour market for
indicators5 and not only base pay levels, the current total salary
licensed aviation personnel.
levels of TC are still located at the lower bound of the market 14
times out of 21. Therefore, the survey results indicate clearly for the
In order to begin this process of renewal, TC needs to develop a
three benchmarked positions there is a large gap between the CAI
long-term strategy to provide it’s management with the tools
base salary and those measured positions in the industry.
necessary for the effective administration of the CAI population and
the creation of the required working environment to attract and retain
Other survey results that address non-monetary topics indicate that
a skilled and motivated workforce TC needs. Additionally, it is
overtime paid is not a frequent practice on the market for any of the
essential that TC recognises that the labour market forces that the
three benchmark positions on the market. Additionally, the vacation
Department faces in regards to the recruitment and retention of
schedule generally stops at a 4 weeks maximum. After 1 year of
licensed aviation personnel differ in magnitude across the various
service, the industry standard is to offer is 2 weeks of vacation.
service lines that comprise the Civil Aviation Program.
Finally, most of the industry requires an annual medical exam.
The following dimensions should be taken into account when
1.5
Conclusions
It must be concluded that TC needs to position itself as an employer
who is both attractive and competitive. This can be achieved
through the renewal of TC’s human resource practices, the effective
promotion of the essential role of the inspector in ensuring aviation
5 Salaries + bonuses = total pay
developing a long-term strategy:

The establishment of a compensation package with greater
degree of flexibility that would take into account specific labour
market pressures in the various segments of the aviation sector.
This flexibility would include the widening of the salary bands
between the different classification levels to distinguish between
levels of responsibility and the degree of complexity but also the
effect that these variables have on the competitiveness of
compensation within the labour market. The compensation
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
package must take the Department to a competitive level were
the CAI’s role in aviation safety is perceived to be an attractive
alternative to those individuals in the industry seeking a career
change. Compensation packages could include measures beyond
the basic salary structure and can include allowances or bonuses
that are often found in the private sector.

Develop recruitment campaigns and policies that promote the
positive factors of a career with TC. These include the level of
responsibility, the working environment, and the uniqueness of
the CAI’s regulatory role. These factors were noted in staff
interviews as important in making the Department an attractive
alternative to the private sector while noting the unique culture in
which the licensed aviation personnel develop their skills and
experience.

Target those individuals who have come to a point in their career
where a senior pilot position on the line or a management
position with the carrier no longer provides them with the
lifestyle, working environment, or professional challenges they
are seeking in their career.

Strengthen and revise existing exchange programs to again
encourage exchanges within the Department and with the
industry at large. Use these exchange programs to support the
development of a career path for all inspectors that are
achievable and affordable to the Department.

Address the hurdles that a manager must overcome in order to
fill a vacancy. The issue around portraying the Department as an
attractive and competitive alternative to the industry is as
important as establishing the tools necessary for management to
effectively interact with an increasingly competitive labour
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market. All efforts in managing the problem of recruitment will
fail if management doesn’t have the flexibility to respond to
potential candidates in a timely manner.

The Department should consider a strategy of complementing
‘off the shelf’ skill sets obtained through experienced industry
recruits with the development and sustainment of essential skills
internally through a diversified approach. This approach could
include; traditional training provided by the Department, the
strengthening of the line-flying program.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
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time there exists among the CAI population a perception that there is
2
Introduction
a significant compensation gap between the Department and the
aviation industry.
In recent years major changes have occurred in the aviation sector.
The aviation sector has recovered significantly from the downturn of
In order to define ways to deal successfully with these challenges TC
the early 1990s. But more importantly, over the past years, the
identified a need to undertake a study for the Civil Aviation
aviation sector has undergone significant change driven by economic
Inspector (CAI) community within the Department’s civilian
cycles and the restructuring of the government’s management of
aviation program. PricewaterhouseCoopers LLP was retained to
Canada’s transportation system. This restructuring has been focused
undertake this review.
on the commercialization and decentralization of government owned
2.1
Objectives and Scope of the Review
and operated transportation assets, such as NAV CANADA and
various aerodromes under the National Airports Policy, the economic
This review was intended to bring to light specific issues regarding
deregulation of commercial aviation, and bilateral agreements, such
recruitment, retention and compensation practices that arose from an
as ‘Open Skies’ with the United States.
examination of the Civil Aviation Inspector (CAI) community of TC
compared to private sector operators that employ people with similar
These changes have led to an important transformation of the
certifications, qualifications, and levels of experience.
sector’s regulatory framework and, as a consequence, the role of
Civilian Aviation Inspectors (CAIs) who inspect air operators, the air
Specifically, the review endeavoured:
navigation system, flying schools, and airports for conformity to

To assess the sources of recruitment and means of retention
practiced by the Department for CAIs.

To assess the required qualifications and any internal/external
training and licensing requirements in comparison to their
Department and private sector counterparts.
government standards and regulations. More importantly, these
changes have put some significant pressures on the ability of TC to
manage recruitment and retention of its CAI population. At the same
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA

To assess the basic salary and benefits of the Departments CAI’s
in comparison to their private sector counterparts.

To document any innovative practices and, more generally, any
emerging issues regarding the supply and demand of the labour
market that the Department draws upon for recruitment.
12
It should be noted that while there are populations of CAIs employed
by multi-modal organizations such as the Transport Safety Board,
these groups were considered outside of the scope of this study and
are not included in our analysis.
The scope of the review covers issues pertaining to the CAI
As demonstrated in Figure 1: Civil Aviation Organizational
community, currently comprising of approximately 356 inspectors,
Structure, the Civil Aviation Program has eleven service lines at the
employed by TC as part of its Civil Aviation Program and with the
headquarters function, of which seven are mirrored in the five
Department’s aircraft services branch.
regional offices across Canada. While the entire population of CAIs
was included in our review, the focus of the external interviews and
The Civil Aviation Program and the aircraft services branch have
industry salary survey was on the commercial and business aviation
nearly 1,250 employees located in headquarters, five regional
(CBA) and general aviation (GA) service lines. It is in these service
offices, and numerous service centres, with a budget of $93 million
lines where a majority of CAIs are employed by the Department.
6
(1997-98) . Headquarters determines the Civil Aviation Program’s
content, policy, and standards while the regions deliver the program.
The notable exception in program delivery is the international and
specialized components of the program, international and national
flag carriers, which are the responsibility of the large air carrier
group (7th Region) co-located with the headquarters function in the
NCR and located across Canada in a number of operational bases.
6 Transport Canada, Challenge ’98: Civil Aviation Program Overview.
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Figure 1: Civil Aviation Organizational Structure
HQ
Regions
Assistant Deputy Minister Safety
and Security
Regional Director General
Transport
Director General
Civil Aviation
Regional Director Civil Aviation
Aerodrome Safety
Year 1
Aerodrome Safety
Air Navigation Services and Airspace
Aircraft Certification
Air Navigation Services and Airspace
Commercial and Business Aviation
System Safety
Airworthiness
Air Carrier
Large
Foreign
Commercial and Business Aviation
General Aviation
Enforcement
International Aviation
Maintenance and Manufacturing
General Aviation
Program Services
System Safety
Regulatory Services
System Safety
Training Services
Training Services
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
2.2
14
Experience. The level of experience, required time, type, and
systems.
Approach and Methodology
All of these variables influence compensation levels and, hence,
In order to achieve the assignment’s objectives, first studied the
labour market in which TC competes for qualified and capable CAIs
was studied. We have used the following framework, as
recruitment and retention practices of employers. By using these
variables as a basis of comparison, it was possible to ensure the most
valid correlation possible.
demonstrated in Figure 2: Comparison Framework, was used which
depicts a number of variables within the labour market, and which
we examined in responding to all the requirements of the terms of
reference. The comparison framework has allowed the drawing of
valid comparisons between the CAIs and occupations of similar
scope and responsibility since multiple variables were considered.
The variables which were examined included, but were not limited
to:
Once a basis for comparison had been established, a number of
secondary sources were reviewed, as listed in Appendix ‘A’, to gain
a better understanding of the trends in the aviation industry and to
collect supplementary compensation data. The recruitment and
retention practices were then documented that have been developed
for the CAI community by TC and drew a comparison with other
employers in the aviation sector. Issues of recruitment, retention
and compensation levels were also assessed through aviation

Working Conditions. The specific requirements of the job in
terms of working hours, schedule, location of work, travel,
overtime, schedule of vacation;

Job Complexity. The complexity of similar occupations in
regard to level of supervision, responsibility, effort, and direct
consequences of decision-making;

Certifications. The level of certification required and/or
education level; and
industry interviews and a salary survey administered to the industry.
The differences were then delineated. A complete list of site visits
and interviews undertaken with TC, private sector aviation operators,
training and instruction organizations is found in Appendix ‘B’.
It should be noted that while the measurement of total compensation
often includes salaries and benefits, it is inherently difficult to assign
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
a net worth to employee benefits as their costs or value depend on
factors such as demographic characteristics (age, gender, and
service) and experience. These factors may vary from one group to
another. An effort was made to document benefits and frame the
comparison between TC and other sector employers with a
discussion of ‘relative value’. The concept of ‘relative value’ refers
to an assessment of the adequacy and competitiveness of the benefits
provided by TC relative to those provided by other employers in the
aviation sector.
A gap analysis among all the factors of this framework led to a
recommendation to TC for a directional approach to improve the
Department’s competitiveness in the labour market and its ability to
recruit and retain licensed aviation personnel and to respond to the
increasing demands of the industry.
15
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16
Figure 2: Comparison Framework
CIVILIAN AVIATION INSPECTOR
(CAI) COMMUNITY OF
TRANSPORT CANADA
PRIVATE SECTOR PILOT
COMMUNITY AND
RECRUITMENT POOL
Demographic Profile
Demographic Profile
Job
Complexity
Age, Gender, Geographic, etc.
Level of Classification
Breakdown of level
populations
Classification of level review
results.
Recruitment/Retention
Practices
Employment trends, staff
requirements, vacancies
Compensation and Benefits
Compensation band ranges.
Comprehensive list of
benefits
Certification and Experience
Certification/technical
requirements.
Length of experience
Age, Gender, Geographic, etc.
Level of Classification
Collective Agreements
Seniority Issues
Working
Conditions
Certifications
Experience
Recruitment/Retention
Practices
Employment trends, staff
requirements, vacancies
Compensation and Benefits
Collective agreements.
Negotiate wage and benefits.
Certification and Experience
Certification/technical
requirements.
Length of experience
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3
The Context of the Review
17
Additionally, with the introduction of the CARS, effective October
10, 1996, clearer regulatory guidelines that could be effectively
The context of this study includes the significant issues or
monitored, audited, and enforced were introduced. Finally, with
developments within the civil aviation sector that effect change
bilateral agreements such as Open Skies, recent industry growth, and
within the industry and, conversely, in TC.
the emergence of new carriers, the aviation business environment has
changed significantly over the past decade, prompting the
3.1
A refocused and reorganized Transport Canada
Department to alter its delivery of services and administration of the
national civil aviation safety program. Still, the program aims to
Due, in part, to the status of public finance in Canada, the
fulfil the Department’s mission statement: “To develop and
introduction and implementation of the Civil Aviation Regulations
administer policies, regulations, and services for the best possible
(CARS), domestic deregulation, and bilateral agreements, such as
transportation system.”
‘Open Skies’, the role of TC in the transportation system has
changed greatly. With cost recovery there is a continued focus on the
In response to these challenges and opportunities, the Department
delivery of services which are ‘value based’ and, hence, a demand
has drafted an overall strategy, outlined in Challenge #98: Civil
from industry to deliver those services in the most cost effective
Aviation Program Overview. Briefly, the strategy aims to:
manner possible.

Improve ‘big picture’ thinking about safety;
TC has transformed itself from a policymaker, regulator, and

Find new ways to share our safety commitment;
purveyor of transportation services to a policymaker and regulator of

Rethink our approach to recruitment and training;
the transportation system. The civil aviation safety program has

Improve service delivery;
been in the forefront of this transition with the transfer of the assets

Develop measures of organizational effectiveness; and
and the responsibility for the operation of Canada’s civil air

Explore new ways to fund the program.
navigation system to NAV CANADA effective November 1, 1996.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
18
The emerging challenge for the Civil Aviation in the Department is
All of these components play an important role in the transformation
to balance the demands for greater delegation by the larger airline
of TC into an organization which is better prepared to respond to the
providers with the need for traditional enforcement and frequent
challenge of balancing regulatory intervention against a backdrop of
monitoring of very small operators who may operate on the
social, economic, and fiscal realities. This must occur, while
economic margins of the industry. Delegated authority will allow
ensuring that the use of regulatory powers results in the greatest net
those air operators with strong regulatory compliance records,
benefit to Canadian society7. The Department’s overall strategy
advanced safety management systems, and the technical and
reflects the recognition that it must realign its service lines to reflect
economic resources to manage many components of air safety that
the changes in the industry itself. However, in order for the strategy
were once directly regulated by the Department.
to be successfully implemented, it is essential that TC realign its
internal processes, including the recruitment, retention, and
Trained professionals and effective monitoring support this delegated
compensation policies of the CAI population.
authority to industry employees since, ultimately, it is TC which is
responsible for the civil aviation safety program. Current delegations
3.2
A changing regulatory environment
The Department continues to delegate authority to trained, qualified,
and monitored individuals in the industry and is moving towards the
include those to civil aviation medical examiners, company check
pilots, designated flight test examiners, and approved engineering,
maintenance, and training organizations.
use of risk management techniques in its decision-making process
regarding service delivery and safety regulation.
TC is also working towards a risk management model for civil
aviation safety. The Department is dedicated “to using risk
management techniques in decision-making by adopting a structured
process to assist decision-making for front-line and management
7 Transport Canada, Safety Oversight of the Civil Air Navigation System – A Framework, Air
Navigation Services and Airspace, 1997.
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19
operations, regulatory change, program priorities and policies, and
Additionally, an essential component of risk management is
by providing training in risk management.”8
communication at all stages of the approach to risk management and
decision-making. “It is important in addressing stakeholders’
Risk management introduces the idea that the likelihood of an event
perceptions of risk – perceptions which often differ and must be
happening can be reduced, or its consequences minimized. Effective
taken into account in determining the best course of action for
risk management seeks to maximize the benefits of risk taking
minimizing risk.”12
(usually a reduction in time or cost) while minimizing the risk itself
through the process of identifying risks, assessing their implications,
In this context of adopting a risk management approach, the role of
deciding on a course of action, and evaluating the results.9
the CAI is not the same as it was in the past and the type of skills
which will be required by CAIs in the future will need to follow this
The focus on risk management is a significant “departure from a
evolution. These changes in the required skill sets may include:
traditional, more prescriptive approach to the management of a
regulatory-based safety program.”10 As such, CAIs will no longer

While most CAIs have excellent technical skills and are
extremely familiar with CARS, there will be a greater emphasis
on safety management skills, which allow the CAI to more
efficiently evaluate, measure, and ensure that safety standards
are met.

CAIs will increasingly become ‘specialists’ rather than
‘generalists’ while continuing to enhance their ability to manage
an increasingly dynamic environment.

Finally, the communication of the reasons behind decisions will
require special skill sets since decisions regarding safety often
arouse strong responses, specifically economic ones raised by the
exclusively act as ‘policemen’ enforcing the ‘letter of the law’ but as
‘safety systems managers’ involved in undertaking ongoing
assessments of the risks associated with their respective operational
environments and make determinations regarding the degree of
regulatory intervention required at any given time.11
8 Transport Canada, Challenge ’98: Civil Aviation Program Overview.
9 Transport Canada, Risk Management and Decision-making in Civil Aviation, 1997.
10 Transport Canada, Safety Oversight of the Civil Air Navigation System – A Framework,
1997.
11 Ibid.
12 Transport Canada. Risk Management and Decision-making in Civil Aviation, 1997.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
operator. Ultimately, the Department’s credibility as an effective
risk manager depends on its ability to be a good communicator.
20
to in-command (left seat or captain) vs. non-command (right seat or
first officer). Most of the regularly scheduled airlines require at least
1,500 hours of flying time, preferably in multi-engine aircraft, to be
TC will have to take into account and incorporate these new skill sets
requirements in its future recruitment practices.
3.3
A changing labour market for licensed aviators
considered for first officer positions in most of the aircraft they
operate. On average, the typical new-hire at regional airlines has over
2,000 hours while the average new-hire at the major airlines has
almost 4,000 hours.14 TC, itself a regulated operator, is no exception
The career progression model in the industry has changed over the
to this rule.
past five years due to the reduction of licensed aviation personnel
(lower enrolments, higher costs of education, demographics,
The traditional career progression model would be summarized as
increased demands of the industry and technological advances in
moving through four levels of pilot licenses: student, private,
aircraft and simulators). Since TC has undertaken the practice to
commercial, and airline transport. Additionally, except for the pilot
recruit from a pool of experienced people with an airline
holding only a student license, a license holder may have different
transportation pilot license (1,500 hours)13, an instrument and a
ratings or types of certification. A pilot may have ratings for single-
multi-engine rating, they are greatly affected by any change in the
engine, multi-engine, land, sea, helicopter and/or instrument flying.
career progression model in the industry.
A type rating for the specific model is required before a pilot may fly
In aviation, experience is judged in two ways: ‘hours of flying and
an aircraft that attains a maximum speed of 250 knots or more,
the kind of flying. The kind of flying refers to the type of aircraft
and/or that requires a two-pilot crew15. Therefore, type ratings and
(single engine vs. multi-engine) and if that flying experience relates
14 Air Line Pilots Association. Airline Pilot Career Information.
13 Minimum and often more is demanded.
15 Ibid
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
pilot licenses work in tandem and form the core of the career
progression model.

21
flying schools providing training on a variety of aeroplanes and
helicopters.
Another aspect of the career progression model is the segment in
which the pilot’s airline is operating. The type of equipment, scope
of services (regional, national, international - scheduled or charter
services), and the type of operator license granted by TC often
determine the segment of the industry. Briefly, the industry
segments typically include:
It should be noted that many operators might provide multiple
services that may cross a number of segments in the industry. For
instance, many flying schools also provide air taxi operations.
Additionally, there are many interpretations of the variable used to
divide the industry into various segments and any segmentation
should be used with caution.

foreign operators such as Lufthansa and British Airways;

airline operators, such as Air Canada and Air BC, providing
scheduled and charter services using aircraft having 20 or more
passenger seats;

private operators using privately registered and owned aircraft
that vary in size but are used for corporate or business purposes
and the operators are granted a private operator certificate;
Traditionally, most pilot’s careers begin at a flight instruction school
and, after an accumulation of hours, commercial and airline transport
licensing occurs and once an opportunity opens up with a private,
commuter or air taxi operator, he will ‘graduate’ to the next segment
in the industry. Again, by accumulating flying hours and
endorsements on different types of aircraft, the pilot is able to

commuter operators, such as Bearskin Airlines or Ontario
Express, providing scheduled and chartered services using
aircraft having 10 to 19 passenger seats;

air taxi operators providing scheduled and charter services
using aircraft with 9 or less passenger seats;

aerial work operators specializing in aerial spray, forest
fighting, mapping, etc.; and
eventually move to a regional airline as a first officer that is typically
affiliated with one of Canada’s two flag carriers: Air Canada or
Canadian Airlines International.
Once the pilot obtains pilot-in-command experience as a captain with
a regional operator, he may move to the affiliated carrier, to the
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
22
charter industry, or even abroad to a foreign operator into the ‘right
especially the case with formal flying with charter or business time,
seat’ or first officer position in an aircraft. Typically, for an
which allows them to quickly move to the flag carriers. In fact,
ambitious and well-placed individual, the career progression model
previous graduating classes from Seneca or Sault Colleges averaged
could take a decade or more with no guarantee of reaching the
30 to 35 percent of graduating students finding flying positions
ultimate goal of flying as a captain with a national flag carrier.
within a year. Now the placement rate is approaching 80 percent of
Often, a pilot’s career ends in the ‘left seat’ or captain position of a
graduates.16
regional airline.
Fred Jones of the Air Transport Association of Canada (ATAC)
Recently, a new career progression model is emerging due to the
states in a recent Wings magazine article on the flight training
tremendous growth of the industry. Now it is taking less time than
industry: “A renewed interest in general and commercial aviation
ever for pilots to fly increasingly larger aircraft for the flag carriers
and a return to profitability by many of Canada’s air carriers bodes
or charter operators. However, advancement increasingly occurs
well for aspiring new pilots. We are starting to see very promising
from positions in the ‘right seat’ not allowing the pilot to accumulate
telltale signs that the hiring in our industry, as far as pilots are
command time, and management experience, as quickly. This
concerned, is about to explode.” 17
command time is essential for the airline transport pilot’s license.
As always, rapid growth of the flag carriers affects all employers of
While the majority of new pilots still find flight instructor positions
licensed aviation personnel in the aviation sector, including TC. In
as their first job, they do not stay there long. Flight schools are
the end, it is the major air carriers that drive the demand for
complaining of a shortage of flight instructors because the regional
commercial pilots all the way through the ‘supply chain’.
airlines and/or large commuter operators pick them up very quickly.
It now takes three to four years after graduation to find employment
with the regional operators and the prospects have never looked
better for those with 1,000 to 1,500 hours of flight time. This is
16 Wings Magazine, Job Hopes Brighter for Next Wave of Pilots, Feb/Mar 1997.
17 Ibid
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
23
In the same article, Roger Burgess-Webb of the Canadian Airline
The increasing competition at the senior levels of the industry
Pilots Association agrees and says there will be continued demand
directly effects TC, as it is this segment of the pilot population from
for entry-level pilots well into the next century. He noted that the
which it recruits. This is primarily the result of the requirements for
demand for pilots is fueled by the pilot age distribution – where a
an airline transport license, command experience, and a multi-engine
growing portion of pilots are now in their fifties approaching
and instrument rating. This exposes TC directly to the competitive
retirement age. According to Mr. Webb, “The major airlines alone
nature of the labour market.
will have a requirement for at least 800 new pilots just to meet
current demands - if you add the factor of early retirement, expansion
3.4
The airline industry has a unique culture
and increases in airline traffic, that figure increases exponentially.”18
The occupation of a pilot is seen as being similar to that of a ship
The net result of rapid industry growth has been a rapid alteration of
captain. As an individual, they are in the unique position of being in
the career progression model for pilots. The overall pool of pilots is
direct control of a piece of equipment worth millions of dollars and
not growing at the same pace as demand. Thus, there is a tightening
of the lives of hundreds of people. Additionally, in order to enter this
of the labour supply at the entry point to the industry and a more
profession, there is a high cost with regard to training and time spent
competitive market at the senior levels of the industry, which has
on different types of aircraft. Pilots pay this cost because of the
driven compensation levels higher. And, according to industry
desire to fly above all else. This is the dynamic that all employers
observers, this will prove to be the case in the future. “The recent
must deal with in the industry.
resurgence in general and commercial aviation doesn’t include
certain sectors of aviation, but all facets of it, and is here to stay well
There is a common perception among the general public that
beyond the year 2000.”19
licensed aviators are overpaid and unnecessarily pampered by their
employers. Recent strikes at major carriers across North America,
including Air Canada and Northwest Air, attest to the growing
18 Ibid.
19 Ibid.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
24
demands of pilots regarding to compensation and benefits, especially
to fly is a challenge many airlines face when they attempt to move
in light of the recent recovery of the industry after a decade of
line pilots into management positions.
downsizing and wage rollbacks.
The challenge that employers of licensed aviation personnel,
Interestingly enough, pilots are well aware of the public’s disdain
including TC, is to take note of this culture if it is going to continue
and have battled back through a number of public relations efforts
to employ licensed aviation personnel. For instance, TC may have to
that have centred on these key points:
alter its ‘bureaucratic’ reputation and make the position as
challenging as possible as pilots are not inclined to look at TC as a

The tremendous responsibility that pilots take on every time they
begin their day – primarily through the responsibility he or she
undertakes for the safety of others;

The cost of becoming a commercial airline pilot is tremendous
and growing – excluding the cost of a college or university
degree, a pilot’s career, on average, $30,000 to obtain an airline
transport license, and a multi-engine and instrument rating;

The time invested in becoming a pilot to ultimately reach the
command position of a large aircraft with a flag carrier –
traditionally a decade or more;

The age and medical restrictions on the length of a pilot’s career
may restrict the potential earning period of a pilot.
The foremost characteristic of pilots is the desire to fly at any cost.
They have trained their entire lives for the opportunity to fly modern
and technically challenging aircraft and to leave behind this ambition
viable career alternative to flying with an airline.
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25
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
26
The increasing demand for licensed aviation personnel may be
4
The Current Situation in Civil Aviation
attributed to a number of trends occurring in the aviation industry.
Most notable is how sudden and recent the industry turnaround is
This section will attempt to summarize current trends regarding
employment, the number of operators, the number of licensed
and how significant that turnaround has been.
These trends include:
aviation personnel, fleet size, and salary levels. All of the data
referenced here are reproduced in table format in Appendix ‘C’.

An increase in the number of passengers carried. According
to Statistics Canada, Aviation Statistics Centre, the number of
passengers carried by air carriers, Tiers I-IV has increased from
31.8 million in 1991 to 39.4 million in 1996 with the majority of
that increase occurring between 1994 and 1996.

An increase in the number of revenue passenger miles.
Between 1991 and 1996 the total revenue passenger miles flown
by the industry, air carriers Tiers I-IV, increased from 36.1
billion to 49.7 billion with a majority of that increase occurring
between 1994 and 1995.

Greater variety in the fleet. The profile of the airlines’ fleets
continues to change and modernize. Between 1995and 1996,
according to Statistics Canada’s Civil Aviation Report, the
number of jet aircraft increased by 9.7%, the number of
turboprop aircraft has fallen 1.3%, while the total piston aircraft
has fallen 0.8%. Between 1995and 1996 the number of rotary
aircraft declined 1.4%.

An increase in the number of operators. According to the
Canadian Transportation Agency, the number of air operators
continues to increase both domestically and internationally. The
number of commercial carriers has increased from 959 in 1979
Three segments of the overall issue are examined: the airline
industry, the labour market, and TC.
4.1
The Airline Industry
According to Statistics Canada’s Civil Aviation Report, both
employment and salaries for licensed aviation personnel in the civil
aviation industry have increased rapidly. Between 1995 and 1996
the number of pilots and co-pilots increased by 6.0% compared to an
overall increase of 2.4% for all airline employees. During the same
time period, the salaries and wages for pilots and co-pilots increased
10.3% compared to an overall increase of 7.7% of all airline
employees. The higher growth in both employment and salaries for
pilots in comparison to all airline employees may be a reflection of
the competitiveness of the labour market leading to an overall
tightening of that market for licensed aviation personnel.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
to 1,021 in 1995. The number of foreign commercial carriers
operating in Canada has increased from 734 in 1979 to 913 in
1995.

27
decrease of 0.40% in the total number of pilot licenses, a decline of
0.10% of commercial pilot licences, and a decrease of 0.40% of all
aviation licenses.
An increase in the number of aircraft. According to the
Canadian Civil Aircraft Register, the number of registered
commercial aeroplanes increased from 4,553 in 1993 to 4,756 in
1997. Additionally, the number of registered commercial
helicopters increased from 1,143 in 1993 to 1,256 in 1997.
The stagnation in the number of ‘in force’ aviation licenses may be
attributed to a number of trends occurring in the aviation industry.
These trends include:
4.2
The Labour Market of Licensed Aviation Personnel

A decline in private licenses. The shift away from private to
commercial pilot and airline transport pilot licenses may be an
indication of a significant industry uptake of license holders.
According to TC, Civil Aeronautics, between 1993 and mid1998 the number of private pilot licenses fell from 30,392 to
27,698, the number of commercial pilot licenses rose from 7,829
to 9,055, and the number of airline transport pilot licenses rose
from 8,707 to 10,426.

The changing demographics of aviation license holders. It
appears that there are fewer individuals under the age of 30
holding a private pilot license then those individuals holding a
commercial pilot license possibly reflecting a change in the
career progression model. According to TC, Civil Aviation, the
age bands for private pilot licenses in 1998 were: 17% are under
30, 22% are between 30 and 39, 26% are between 40 and 49,
21% are between 50 and 59, and 14% are over the age of 60. For
commercial pilot licenses: 32% are under 30, 26% are between
30 and 39, 23% are between 40 and 49, 13% are between 50 and
59, and 6% are over the age of 60. For airline transport pilot
licenses: 9% are under 30, 35% are between 30 and 39, 32% are
When measuring the size of the labour market for licensed aviation,
one must look at the number of licenses in force or currently
registered with TC. According to TC’s Aviation Forecast (19962009), the trend of insignificant growth in the total number of
licenses will continue. Specifically, between 1982 and 1995 there
was a decrease of 0.80% in the total number of pilot licenses, a
increase of 0.70% of commercial pilot licences, and a decline of
0.30% of all aviation licenses.
Between 1995 and 2004 it is projected that there will be a decrease
of 0.80% in the total number of pilot licenses, a decline of 0.20% of
commercial pilot licences, and a decrease of 0.80% of all aviation
licenses. Between 1995 and 2009 it is projected that there will be a
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA

28
between 40 and 49, 19% are between 50 and 59, and 5% are over
the age of 60.
According to Aircraft Operator (AO)20 distribution rates
The enrolment in flight schools. While there now appears to be
a relative boom on flight training, there are a number of
restrictions on how many pilots will emerge from the flight
training industry. The three significant restraints include:
allocation of staffed AO positions for the TC Civil Aviation Program




the chronic shortage of Class 1 flight instructors;
the lack of provincial government support in providing
funding for colleges to expand the number of funded spaces
in the flight instruction program;
a lack of air operator participation in training programs; and
an end to the funding of a student pilot’s training through the
Canadian Students Loan Program.
(Allocation/Strength), derived from TC TIPS data, the total
should be at 403 inspectors while total current strength lies at 356.5
inspectors, or at 88.5% of operational levels.21 However, the TIPS
data examined and our interviews with staff and management
indicate that the level of staffing vacancies is not comparable across
all regions and service lines.
For instance, the CBA branch is at 89.5% of operational allocation
nationally but when the specific programs within the branch were

The decline in the number of military aviators. The air force
has been traditionally a prime source for experienced
replacement pilots for the airline industry as well as other
government departments, including TC. But due to ongoing
defence budget cuts which has affected training throughput and
the attractive salaries of the airlines, the air force is currently 243
pilots short of the current, downsized mandate strength, and
expects to lose a further 25% of its current 1,371 pilots to
attrition.
examined it was discovered that there are significant staffing
shortages in the large air carrier program (7th Region) which is only
at 78.4% of operational allocation. Correspondingly, when certain
regions were cross tabulated with the CBA branch, it was found that
the Ontario Region, at 81.8% of allocation, and the NCR region, at
80.75% of allocation, were also suffering from significant staffing
shortages. In comparison, other service lines, such as aircraft
4.3
The Civil Aviation Program (Transport Canada)
maintenance and manufacturing and regulatory services, both at
100% of allocation, and general aviation, at 94% of allocation, seem
20 The AO section is the classification group in which the CAI population resides in TC.
21 Allocation/strength levels as of September 21, 1998.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
to be more successful at retaining their staffing levels at or close to

There has been a departure of experienced personnel,
perhaps due to individuals reaching retirement age, between
1995 and 1998. In 1995/96, according to TC TIPS data, 33 AOs
left the Department with a mean age of 52.8 years and 18.5 years
of experience, while in 1996/97 29 AOs left the Department with
a mean age of 55.3 years and 26.8 years of experience. Finally,
in 1997/98 44 AOs left the Department with a mean age of 50.8
years of age and 20.2 years of experience. Total departures
between 1995 and 1998 was 106 or a loss of 26.3% of total
allocated strength. The mean years of service for those inspectors
departing during this period was 21.8 years.

The departure of experienced personnel has affected some of
the regions to a greater degree than others. In 1995/96,
Headquarters suffered the highest losses with 11 followed by
Ontario with eight, while in 1996/97 the NCR (headquarters)
again suffered the highest losses with 12 followed by PNR24
with 8. Finally, in 1997/98 the NCR (headquarters) lost 17 AOs
while the Pacific region lost 10. Between 1995/96 and 1997/98
the NCR (Headquarters) lost a total of forty inspectors, by far the
highest of all the regions, with the Ontario region following with
19 during the same period.

The external recruitment from April 1995 to April 1998 has
not kept pace with departure levels, but there has been a
recent increase in new hires. According to TC TIPS data, in
1995/96 five AOs were recruited with a mean age of 40.3 years,
in 1996/97 ten AOs were recruited with a mean age of 40.1
years, and in 1997/98 47 AOs were recruited with a mean age of
allocation.22
The allocation of staffed CAI positions is characterized by the
following trends23:


The Department is compensating for staff vacancies partially
through the use of overtime. Those regions with the highest
staff vacancies have the highest average overtime. According to
overtime levels for the Civil Aviation Program (FYR 1997/98),
derived from TC TIPS data, approximately 69.5% of AOs have
claimed overtime hours with an average cost of $5,170. Ontario
had the highest level of overtime claims with approximately
75.6% of AOs claiming overtime hours with an average cost of
$6,473. At Headquarters, approximately 62.3% of AO have
claimed overtime hours with an average cost of $7,848.
TC’s AO population is a maturing workforce as reflected by
age and length of service. In 1996/97, according to TC TIPS
data, the average age of TC’s AO population was 48.5 years.
Additionally, the average length of service was 16.5 years, while
in 1997/98 the average age was slightly higher at 48.6 years and
the average length of service was slightly lower at 15.2 years.
22 For a complete chronicle of AO distribution rates cross tabulated by region and service line,
please see Appendix ‘C’.
23 For a complete chronicle of AO distribution rates cross tabulated by region and service line,
please see Appendix ‘C’.
29
24 PNR- Prairie and Northern Region
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
43.3 years. Total hires between 1995 and 1998 was 62 or the
filling of 58.5% of vacancies resulting from departures during
the same time period.

The regions have been relatively more successful than the
NCR (Headquarters) in recruiting candidates to fill CAI
vacancies. Between 1995/96 and 1997/98 the NCR region was
only able to fill approximately 35% of vacancies resulting from
departures during the same time period. In contrast, the Quebec
region was able to add two new positions beyond the
replacement of vacancies and the Pacific region was able to fill
approximately 94% of vacancies resulting from departures
during the same period. It should be noted that the Ontario
region also experienced difficulty in filling vacancies through
recruitment, filling just over 52% of vacancies during the same
period.
30
fair and independent manner at all times, including in their retention
recruitment practices.
5.1
Department of National Defense
However, TC isn’t the only government organization facing
challenges relating to the recruitment and retention of licensed
aviators. The other primary government employer of aviation
personnel is, of course, Canada’s military and it is facing many of
the same challenges that the Department is. However, the
Department of National Defense (DND) has undertaken measures to
address issues of attrition and has stepped up its recruiting and
training efforts.
5
Recruitment and Retention Practices
According to a recent interview in Wings Magazine with Major
As demonstrated in our overview of the context of the review and the
current situation in civil aviation, the challenges relating to
recruitment and retention are shared by all employers in the aviation
General Lloyd Campbell, Commander of the 1st Canadian Air
Division/Canadian NORAD25 Region, pilot attrition is a significant
issue facing Canada’s military. Historically, pilot attrition has been
sector, including TC. Of course, government organizations do face
their own unique challenges of being a public entity that is
responsible to not only its immediate aviation clients but to the
general public as well. As such, TC must appear to be acting in a
25 NORAD – North American Air Defense Command
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
between four and six percent or 100 to 110 pilots a year, but last year
more than 140 pilots left the air force.26
The attrition program has two major components:

Those pilots with less than nine years of service are eligible for
$25,000; those with at least nine years but less than 18 years of
service are eligible for $50,000; and those with at least 18 years
of service but less than 23 years are eligible for $75,000.

In each case the retention allowance is divided and paid out once
a year in a lump sum over a three-year period.
Some sectors such as fighter and transport have been hit hard with
attrition levels as high as 15% which has major implications for
operations. Pilot attrition is a concern to any commander as it can
cost taxpayers up to $4 million to train a single pilot, depending on
the aircraft type and role. In the interview Campbell states “…
aspirations for higher pay and more stable lifestyles in the
commercial sector continue to lure large numbers of pilots away
from the air force.”27
31
Campbell notes that while the military’s powers of persuasion are
limited and it is ultimately up to the individual involved to make
career decisions, the military must act proactively and make the
occupation as attractive as possible. “I’ve always believed that we
shouldn’t hope for a downturn in the economy to solve our problems
In order to address pilot attrition, DND has realigned pay allowances
of pilot retention.” 29
to better compensate individuals in three key target areas where
pilots are eligible to leave the air force after serving an obligatory
5.2
Transport Canada
terms of service. “We have just initiated a retention allowance which
is intended to compensate individuals … pilots who are eligible for
TC has traditionally relied on the air force for CAI candidates and
the pilot retention allowance must sign up for an additional five years
has often ‘poached’ aviators looking for a more stable lifestyle. Air
of obligatory service.”28
force pilots have proven to be a reliable source of recruits in the past
since retired officers can transfer their pensions directly to TC
without a penalty. Additionally, they have proven to be strong
26 Wings Magazine, Canadian Air Force: Lean and Functional, Aug/Sept 1998
27 Ibid.
28 Ibid.
29 Ibid.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
32
candidates as all have staff officer experience which has prepared
demands for services. TC is losing skilled and qualified individuals
them well for drafting regulations, reporting violations of
to the industry at the very same time the industry is demanding more
compliance, and managing resources as part of the Civil Aviation
regulatory services. In such an environment it is essential to better
Program. With the significant downsizing that has occurred in the
predict when industry surges will create a greater demand for the
Canadian military, the rich recruiting pool that the air force once
Department’s resources and to better reflect those changes internally
provided cannot be relied on as a source of eligible candidates for
within the Department. As demonstrated, industry surges often
TC in the future.
correspond with an increase in employment opportunities for
licensed aviation personnel and a corresponding increase in
While the DND approach of offering retention bonuses is not a
compensation as the recruitment pool of qualified individuals draws
unique approach to difficulties with attrition rates, the policy itself is
increasingly shallower.
a realization that old recruitment and retention practices are no
longer applicable to the new environment of aviation in Canada. As
Figure 3: Staffing Resources vs. Service Demands
Campbell noted, governments have tended in the past to rely on
downturns in the economy in order to secure a highly skilled
Level of Demand
workforce by providing a ‘recessionary proof’ occupation which
does not expose pilots to the uncertainties of the aviation business.
This has proven to be an ineffective recruitment and retention
strategy, as it is not designed to serve the organization’s long term
strategic goals.
G
R
O
W
T
H
Staffing
Levels
As illustrated in Figure 3: Staffing Resources vs. Service Demands,
TC’s inability to manage its recruitment and attrition challenges
Year 1
Year 2
Year 3
Year 4
results in an inverse situation regarding available resources and
PERIOD IN THE BUSINESS CYCLE
Year 5
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
33
address issues of rising attrition and the difficulty of TC to attract
qualified candidates.
It was also noted in interviews with TC management that a
homogeneous human resource strategy is not the most effective
For example, many managers noted that exchange programs with the
method of addressing ‘chronic’ staff vacancies that are specific to a
industry were thought to provide a ‘win-win’ situation for both TC
branch and/or a certain operational region. It was suggested that
and the participating air operator. It was thought that by providing
initiatives tailored to the specific components of the program would
these exchanges, TC would be able to offer CAIs the opportunity to
be required in order to address the difficulties some regions, such as
maintain or update their technical skills and gain a better
Ontario, and service lines, such as CBA, were experiencing in
understanding of the aviation business environment while the air
recruiting and retaining CAIs. Reporting data derived from TIPS
operator would gain knowledge and insight into the regulatory
supported management’s observations that the level of staff
environment. Unfortunately, interviewees reported that the industry
vacancies is not comparable across all regions and service lines.
exchanges often ended with the CAI moving to the participating
airline due to a significant difference in compensation offered by the
There are a number of initiatives undertaken by TC to make it an
participating parties. The practice of exchanges has largely ended, as
attractive alternative to other employers in the sector. And there is a
managers are not willing to risk losing a valuable employee.
broad commitment by TC, through the creation of a ‘first time’
Human Resource Plan, to “… develop a positive and innovative
It should be noted that TC has been relatively successful in making
work environment for all employees for their training and
itself an attractive employer by providing a lifestyle that better
professional development.”30 However, many managers expressed
responds to the specific needs of its employees. However, in many
frustration with the results of these initiatives, their inability to
interviews with TC management and staff, it is apparent that there is
a widely held perception that there has been an erosion of working
conditions, specifically more overtime, primarily due to long-term
30 Transport Canada, Challenge ’98: Civil Aviation Program Overview.
vacancies and heavier demands from industry. This perceived
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
34
erosion of working conditions comes about at a time when the salary
with filling vacancies in a timely manner, from both internal and
gap between industry and government has widened considerably.
external sources. It was noted in Department interviews that there
was an identifiable need for establishing the tools necessary to
During interviews with management and CAIs, there were four
respond to potential candidates in a timely and effective manner.
primary factors affecting perceptions regarding the TC working
environment. These four factors are:
Another noteworthy issue that arose during the interview process
with Department management was the narrowness of the salary


The hours of work must not change without compensation.
Staff are willing to work overtime, but would resist any attempts
to change the hours of work without some form of
compensation;
The provision for more frequent and pertinent training.
Staff wishes to be afforded the opportunity to enhance their
skills and see training and currency as essential to their
credibility in the role of inspector.
bands for CAIs. This may result in management earning a salary
close to those inspectors reporting to him/her, not including overtime
or in command flying allowances which favour line staff. It was
thought that the narrowness of these salary bands has acted as a
disincentive for the staffing of vacant management positions within
the Department as there is not a great deal of compensation for a
greater degree of responsibility and/or authority.


The establishment of a career progression model.
Management must provide opportunities for advancement within
and between the different branches and regions of TC.
The maintenance and/or increase of allotted flying time.
Staff expressed a concern that it is becoming increasingly
difficult to maintain their currency if they are not allotted flying
time that is adequate to maintain their skills.
Finally, it was noted in both the private sector and TC, that there was
a need to clarify the conflict of interest policy that governs the
behaviour of inspectors and, in some interviewees’ minds, restricts
TC from undertaking innovative practices which would improve the
working environment. The current conflict of interest policy is
It should be noted that TC management noted that beyond the issues
perceived by many as a double standard, especially with the increase
of compensation and the working environment are the difficulties
of delegated authority to individuals in the industry who are not
restricted by the policy. An inconsistent policy may unnecessarily
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
35
restrict those inspectors working outside of the Department and not
for line positions, but were often turned down due to their inability to
allow for a closer relationship between the inspector and the industry
offer the inspector a command position with the airline.
while maintaining third party impartiality.
This is noteworthy since the union agreements that exist with the
large flag carriers often mean that even an experienced pilot will be
brought into the line far down the seniority list, thereby affecting
5.3
The Aviation Industry
Turning to the industry, it should be noted first that many industry
interviewees took the view that TC and the industry are in a
salary and working hours. In the case of firms with non-union shops,
issues of seniority were not a barrier to recruitment of experienced
pilots, including CAIs.
partnership in establishing the safest possible airline industry – ‘it is
in everyone’s best interest’ seemed to be the guiding principle.
However, how to continue that partnership was another issue with
many larger airlines advocating more delegation of authority and
flexibility with regulatory compliance (exceptions and/or minimal
equipment lists) and smaller air operators seeking a greater level of
regulatory assistance.
There were some suggestions for improvement, specifically
regarding the consistency of the application of enforcement and the
level of surveillance by introducing risk management techniques that
have been adopted by the industry. There were also general
comments that the level and depth of experience among CAIs seem
to have fallen recently as TC loses inspectors to industry and
retirement. As well, it was suggested that TC not rely on only one
In general, all interviewees were satisfied with the professionalism
and level of service they were receiving from TC, especially since
the creation of the TC Service Centres. In fact, in part due to the
professionalism and experience of the CAIs, many industry
interviewees stated that they had made informal offers to the CAIs
source for recruitment, specifically the military, as it is essential to
have a good mix of aviation business experience, safety management
experience, and technical expertise. Finally, it was noted that TC
needs to establish a succession plan immediately before external
losses affect service levels and to better communicate the strategic
direction of the Civil Aviation Program – to clients and staff.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
36
available. There is also a built in incentive to remain with the parent
As noted, it would be incorrect to suggest that industry enjoys
airline and its affiliates as seniority is often transferable and this
complete flexibility and has no restrictions on its recruitment and
significantly restricts movement between airlines at the senior levels.
retention policies. Many of the large carriers, such as Air Canada and
Canadian, and their affiliates, are restricted in their human resources
Not all of the industry is unionized and there are many large
management practices by the fact that they are a unionized
operators, specifically in the charter industries, which are not.
organization. However, there are some relevant examples of
Industry interviewees noted this and invited TC to enter into
innovative practices that were noted during the industry interviews.
partnerships with them to allow more opportunities for CAIs to
update and maintain their skills while flying the line. Some of the
As demonstrated by the recent Air Canada strike, pilots and other
smaller air operators would benefit from the interaction with the
licensed aviation personnel have significant influence on the
inspectors, as they would obtain a better understanding of the
operations of any large operator and can literally shut down an
regulatory environment in which they operate.
airline indefinitely. As such, pilot unions have been relatively
successful in creating labour agreements that are based primarily on
Many of the smaller air operators noted the significant upward
level of seniority, job protection, and competitive compensation.
drawing of licensed aviators that is occurring as the flag carriers, the
Within such a structure, a company is extremely restricted in taking
charters and regionals continue to hire any pilot with relevant
innovative approaches to human resources management so that it
experience and certification. So significant is this draw that some air
maintains enough flexibility to effectively respond to changes in the
operators with unions have voluntarily opened contracts to apply
business environment.
across-the-deck wage increases. In this instance, the costs associated
with continuos recruitment and training were actually higher than
More importantly, unionized air operators tend to not have
significantly increasing compensation voluntarily. It should be noted
significant attrition problems, as an equivalent position with the
that this is an extreme example, but all industry representatives that
same level of seniority with another unionized airline is not
were contacted agreed that the career progression model had changed
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
37
significantly and compensation rates were being driven upwards at
new pilots to remain in operation. The larger operators, especially
all levels of the sector. Most industry interviewees noted a
the national flag carriers like Air Canada, know they dominate the
significant tightening of the labour market for licensed aviation
market simply by their nature and, therefore, have little competition
personnel.
regarding recruiting and retaining experienced aviators.
Recruitment policies also are dependent on the segment in which the
air operator functions. A smaller operator (commuters, charters, or
6
Overview of Compensation
air taxis) reported having informal recruiting practices and typically
targets flight school instructors or graduates. Larger operators
(airlines) reported having more formalized recruitment practices,
such as placing national advertising campaigns or even recruiting
abroad, but interestingly enough they often receive so many
applications that they need not even advertise their vacancies. As
well, it appears that industry is always in a recruiting mode and will
make room for a talented pilot if the seniority issues do not block this
Throughout the interviews herein undertaken, a majority of
stakeholders have noted that compensation has become a major
factor in facing the challenges generated by the evolution of the
labour market for individuals that possess similar qualifications,
certifications, and experience levels as those required by TC for its
CAIs. This has been reflected in the increase of salaries throughout
the industry as noted in the earlier sections of this report.
attempt.
In order to record and report this trend, to accurately capture the
In order to remain attractive employers, the smaller operators rely on
involving the pilot in the everyday running of the company and the
provision of the opportunity to fly and gain hours on a variety of
aircraft. Many realize that it will be impossible to keep every pilot
as they cannot offer the same compensation as the larger airlines and,
therefore, these companies will always be recruiting and training
current salary levels in the industry, and to address the uniqueness of
a diverse and complex industry, three methods were utilized: a
national compensation survey, a review of secondary sources, and
numerous industry interviews. This section documents the results of
all three methods used.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
6.1
The Compensation Survey
38
chosen benchmarks provided a valid measure for industry
respondents against which to compare their employees. The primary
An industry-wide compensation survey of the commercial aviation
reasoning behind this line of thought was that no matter in what
sector using three benchmark ‘positions’ derived from job
service line CAIs involved, they all must demonstrate that they
descriptions provided by TC’s Civil Aviation Department was
possess similar credentials regarding pilot licensing and type
completed. The three benchmarked positions were:
certification for these three benchmark positions in the private sector.

Inspector (CAI-03): This position was benchmarked with a
"Check Pilot - A Designation" on the market.
Of the 25 air operators that were surveyed, 14 responded, for a
Superintendent (CAI-04): This position was benchmarked with
a "Chief Pilot of Company and/or Type of Aircraft".
major employers of licensed aviation personnel and provided strong
Chief (Manager) (CAI-05): This position was benchmarked
with a "Director/Vice-President of Operations".
noted in Appendix D).


response rate of 56%. Those operators who responded included
representation of air operators from all segments of the industry (as
These three benchmark positions have been drawn from the
It should be noted that we organized the sample of air operators into
Commercial and Business Aviation (HQ), recognizing the fact that
four ‘tiers’ as follows:
they will provide reliable comparators for similar positions (working
environment, level of responsibility, technical requirements) in the

Tier 1: National Flag Carriers. Airline operators, such as Air
Canada and Canadian, which provide national and international
scheduled services typically using aircraft having 20 or more
passenger seats.

Tier 2: National Charter Carriers. Airline operators, such as
Canada 3000 and Royal, which provide national and
international charter services typically using aircraft having 20 or
more passenger seats.
private sector. We noted that the CAIs are engaged in a wide range
of activities and responsibilities that include check rides, the
certification of aircraft, the regulation of regional, national and
international carriers, flying training schools, and airports, and the
development/revision of regulatory guidelines. However, the three
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA


Tier 3: Regional Carriers. Airline operators, such as Air
Atlantic and Canadian Regional Airlines, which provide regional
scheduled services typically using aircraft having 20 or more
passenger seats.
Tier 4: Commuter Operators. Operators, such as Bearskin
Airlines and Air Creebec, providing scheduled and charter
services typically using aircraft having 10 to 19 passenger seats.
39
The Civil Aviation Department also completed the survey
questionnaire from an employer perspective in order to ensure the
consistency of answers between survey participants and to draw a
valid comparison between the Department and the industry.
The four tiers better represent how employers interact with the
labour market for licensed aviation personnel, to provide relevant
Compensation survey results
competitors for licensed aviation personnel, and to better reflect the
The full report output of the compensation survey is included in a
career progression model that exists for pilots. It differs slightly
separately bounded report titled Survey of Compensation Practices.
from the typical segmentation definition noted earlier in the report.
The tables on the following page (Tables 1-3) report the average
Certain segments of the industry were not included since it was
survey results pertaining to base salaries (excluding overtime,
essential to accurately reflect the labour market that all employers
allowances and bonuses) as compared with the current TC base
face in the industry.
salaries (excluding overtime and allowances) for the three
benchmarked positions in Commercial and Business Aviation.
The survey questionnaire (see Appendix E) included a brief
description of the benchmarked positions in order to allow the survey
The four ‘tiers’, as noted above, organize the reporting tables. The
respondent to determine and compare an equivalent position in the
detailed results for all participants are presented in Table 1 while
respondent’s firm. The topics covered by the survey included: salary
Table 2 reports the survey results by clusters: the first cluster
scales and base salaries, bonuses, schedules, and prerequisites and
consists of ‘tier’ 1 and ‘tier’ 2 participants and the second cluster
benefits other than pensions and group insurance.
consists of ‘tier’ 3 and ‘tier’ 4 participants. Table 3 presents the
clustering of participants by the four ‘tiers’ and reports on the
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
national exposure of TC to national competition for attracting and
retaining licensed aviation personnel.
The third column of each chart refers to the position of TC on the
market. As an example, 0% means that TC is at the minimum market
level and conversely, 100% means that TC is positioned at the
maximum market level. A percent rank indicator of 50% would
mean that TC is at the median of the market. A percent rank of 35%
would mean that some 65% of observations on the market are higher
than the TC salary package while 35% of observations are lower than
the TC salary package. 31
The "market average" does not take into account the bonuses paid by
some participants. Even if bonus policies are marginal on the market,
they are significant for the total cash value offered by some of the
survey participants.
31 The notion of "percentile" has a similar meaning as the notion of "percent rank". It is
generally used to identify the distribution of market values than the term "percent rank".
40
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
Table 1: Compensation Survey Results - All Participants
TC Salary
Market
Average
41
Table 3: Compensation Survey Results - By Tier Participants
TC Percent
Rank
TC Salary
Market
Average
TC Percent
Rank
Tier 1 Participants
All Participants
Inspector, CAI-03
$61 338
$91 168
24%
Inspector, CAI-03
$61 338
$168 105
0%
Superintendent, CAI-04
$65 263
$99 269
30%
Superintendent, CAI-04
$65 263
$174 598
0%
Chief (Manager), CAI-05
$70 484
$106 139
21%
Chief (Manager), CAI-05 $70 484
$175 105
0%
Tier 2 Participants
Table 2: Compensation Survey Results - Clustered Participants
TC Salary
Market
Average
TC Percent
Rank
Tier 1 and 2 Participants
Inspector, CAI-03
$61 338
$137 483
0%
Superintendent, CAI-04
$65 263
$153 049
0%
Chief (Manager), CAI-05
$70 484
$148 053
0%
Inspector, CAI-03
$61 338
$106 860
0%
Superintendent, CAI-04
$65 263
$131 500
0%
Chief (Manager), CAI-05 $70 484
$121 000
0%
Tier 3 Participants
Inspector, CAI-03
$61 338
$86 133
0%
Superintendent, CAI-04
$65 263
$85 050
0%
$101 750
0%
Chief (Manager), CAI-05 $70 484
Tier 3 and 4 Participants
Inspector, CAI-03
$61 338
$72 642
0%
Superintendent, CAI-04
$65 263
$72 379
47%
Chief (Manager), CAI-05
$70 484
$85 183
33%
Tier 4 Participants
Inspector, CAI-03
$61 338
$59 151
78%
Superintendent, CAI-04
$65 263
$59 708
100%
Chief (Manager), CAI-05 $70 484
$68 616
76%
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
42
there is a large gap between the CAI base salary and those measured
Transport Canada vs. the Market
positions in the industry.
Tables 1, 2 and 3 reveal that for all three benchmark positions, TC is
at the lower bound of the market (0th percent rank) 13 times out of 21
under the correlation that we have analyzed. (Three benchmark
positions correlated against: (1) all participants, (2) by clustered tiers,
and (3) tier by tier.)
Paid Overtime, Vacations and Prerequisites
Other survey results that address non-monetary topics indicate that
paid overtime is not a frequent practice on the market for any of the
three benchmark positions. Additionally, the vacation schedule
The closest position of TC to a central market trend is the
Superintendent benchmark at the 47th percent rank of the clustered
Tier 3 and Tier 4 participants. However, since TC policy is to pay for
generally stops at a four week maximum. After one year of service,
the industry standard is to offer is two weeks of vacation. Finally,
most of the industry requires an annual medical exam.
overtime worked, while the survey participants do not generally pay
for overtime, we could presume that the overall position of TC ought
6.2
Secondary Sources
to be better aligned with the market practices.
A number of secondary sources which addressed the issue of
We have tested this assumption. Assuming that it is the practice of
compensation (salaries and benefits) were also examined during this
TC to pay 12% of base pay in overtime and taking into account that
study. These included a number of recent industry-wide salary
we have to compare total pay
indicators32
and not only base pay
surveys, both domestic and international, which provide coverage of
levels, the current total salary levels of TC are still located at the
licensed aviation personnel in several segments of the aviation
lower bound of the market 14 times out of 21. Therefore, for the
industry that were not included in the industry compensation survey
three benchmarked positions that the survey results indicate clearly
including: business aviation, flight training schools, and rotary
32 Salaries + bonuses = total pay
(helicopter) operators. A specific examination of benefits (pensions
and group insurance) will follow the discussion on salaries.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
43
Table 5: Annual Current Salary (US $) (Job Title by Area)33
The Flight International Pilot Employment Survey – 1998
Region
Captain
We reviewed an international pilot employment survey conducted in
1998 by Flight International Magazine that addressed a number of
issues relating to the professional pilot’s career including salaries
from an international perspective. According to the ‘Work and
Rewards’ portion of the survey, pay and allowances differ greatly by
region, rank, aircraft rating, and the segment of the industry. These
observations are supported by our industry survey.
According to the survey, the average international salary for a pilot is
Job Title
First
Second
Officer
Officer
55,252
47,708
54,592
-
Flight
Engineer
62,464
66,852
Total
92,345
United
88,256
Kingdom
Europe
91,807
52,479
42,500
North
94,822
58,531
47,614
America
Middle East
84,418
64,293
Asia
107,782
76,885
Africa
61,054
41,778
Australia
92,635
54,640
Latin
85,517
39,794
America
* Average salary for each job title per region shown where base size is sufficient.
63,069
60,625
42,417
68,574
28,500
73,542
57,500
$74,360 (US) as demonstrated in Table 5. Taking averages specific
to rank only (disregarding employer category or aircraft flown),
management pilots have the highest earnings at $97,650 (US),
captains follow with $92,340 (US), flight engineers, at $62,460, are
paid more on average then first officers, who earn $55,250 (US) and
second officers who are paid $47,710 (US).
According to the survey, as demonstrated in Table 6, breaking down
pay averages by type of employer, pilots working for crew leasing
companies had the highest salaries at $86,380 (US) followed by
airline crews at an average salary of $78,210 (US). Corporate
operators were paid $62,910 (US) on average while air taxi pilots
earned the least at $41,640 (US).
33 Flight International Magazine. The Flight International Pilot Employment Survey – 1998.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
Table 6: Annual Current Salary (Main Business Activity)34
Main Business Activity
Total
Crew Leasing Company
Airline
Corporate Operator
Armed Forces
Air Taxi
Average Annual Salary (US $)
74,360
86,380
78,210
62,910
55,790
41,640
44
Department managers saw an increase of 4.7% in their annual salary
to $89,800 (US) not including performance bonuses. Chief pilots
overall reported an average wage of $68,000 (US) per year or a 12%
increase over 1997’s levels. Those chief pilots who indicated that
they had specific management duties had a higher annual salary of
$72,000 (US) not including bonuses. The average Captain’s pay was
up 10% to $65,700 (US) while first officers’ salaries increased an
Interestingly, the survey noted that benefits and allowances for most
incredible 30% to $45,600 (US) not including bonuses.
pilots do not form a large percentage of total earnings. Some 22% of
pilots surveyed reported that they did nor receive benefits while 38%
1998 Canadian Aviation Salary Survey
of those surveyed reported that benefits and/or allowances were
worth less than 10% of total income.
Business Aviation – 1998 Salary Survey
A national salary survey conducted by Wings: Canada’s National
Aviation Magazine reflected many of the findings of our industry
salary survey and our industry interviews. First, unionized airlines
still have the highest salaries, followed by corporate and military
We also reviewed a survey conducted in 1998 by Business and
Commercial Aviation Magazine, which focused on the corporate
flight department personnel. The survey noted that a pilots’ average
business salary was $65,450 (US) which was an increase of over six
percent over 1997’s figure.
34 Ibid.
pilots, and unscheduled general aviation charter pilots and instruction
staff making the least. Second, there is a great variation in salaries
depending on job titles, type of aircraft, type of operator, and
responsibilities or tasks.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
45
The average annual remuneration35 in 1997 for Captains with
Finally, the authors of the survey results concluded that the salary
regional, commuter and cargo airlines was $59,800 while those
gains of licensed aviation personnel reflect the difficulties that air
Captains working for charter carriers received $44,100. First officers
operators are facing in attracting new pilots when the regional,
employed by regional, commuter or cargo airlines received an
national and international airlines are hiring at record levels. The
average remuneration of $27,000 while those with charter carriers
findings of the survey also support our conclusions concerning the
received $24,600. Helicopter pilots averaged $67,600 while flight
changes in the career progression model, which have inflated
instructors had an average annual remuneration of $21,000.
compensation levels at the more senior levels of the labour market.
The review of salary surveys undertaken by aviation periodicals
Group Insurance and Pension Benefits
reflected that salary levels are often being driven by that segment of
the industry in which the pilots are working versus their certification
The discussion concerning benefits and insurance was derived from a
and length of experience. This is the case even if, as for TC CAIs,
review of secondary sources including federal employee benefit
these individuals required similar certification and experience at the
documentation and industry benefit data for the aviation industry.
entry level.
Our appraisal of TC salary and benefits package, as compared with
Additionally, it was noted that there are significant differences in the
the market, is based on our survey results and on secondary sources
responsibility levels of individuals within the industry beyond what
of information. For instance, Group Insurance Programs and Pension
their job title indicates and this is reflected in their compensation
Schemes were not surveyed. The assessment of TC’s benefits
levels.
package was based on the analysis of the federal service benefits
program as compared to those packages available in the industry.
35 Wings Magazine. Keeping Scores on Salaries, 1998.
We reviewed the benefits package provided to employees of TC and
compared them to the benefits prevailing in the industry. As the
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
46
information on industry practices concerning benefits packages is
incomplete, we undertook a very broad evaluation and comparison of
6.3
Industry Interviews
the benefits package provided by the Department in relation to the
larger employers. Small employers will generally provide benefits at
a much lower level. The main findings include:
Salary
The interviews indicated that the segment of the industry in which a




Death benefits. The combination of PSSA death benefits and
life insurance provides satisfactory coverage. The employer’s
share of the cost is low;
pilot finds himself/herself employed is the primary variable driving
Disability. The combination of sick leave (we assume they
provide the usual credit of 15 days per year) and long-term
disability insurance can leave a gap in coverage. But this is a
very sensitive matter. Private practice for short-term disabilities
is generally to provide salary continuation or weekly indemnity
benefits after a waiting period of up to 5 days which may be
covered or not by non-cumulative sick days;
is a secondary variable. A third variable identified was that the level
Health and Dental. The level of coverage is satisfactory as well
as at the employer contribution level;
of Canada (ATAC) indicated that the average class 1 instructor, with
Pension. The pension formula (2% of the best six years) is
competitive. Employee contributions are very high at 7,5% of
salary. Ancillary benefits indexation, earliest age without
reduction, survivor pension and disability benefits compensate
for it but only partially. Employee contributions generally do
not exceed 5% in private sector plans. Retirement benefits in
excess of the authorized limits under the Income Tax Act are
provided through RCA’s: this practice exists at Air Canada but
all other private sector employers may not follow it.
compensation while the length of experience with a specific type of
aircraft and in a particular seat (left – Captain, right – First Officer)
of responsibility in relation to the job title of the position varied
greatly between segments of the industry.
In regard to the flight training schools, the Air Transport Association
delegated authority, would have an annual salary of $30,000. Salary
levels varied greatly, with some chief flight instructors receiving
$50,000 for larger flight schools and $28,000 for very small flight
schools. Again, caution was expressed that often the chief flight
instructor was responsible for a number of other roles such as the
director of flight operations, company chief pilot, and company
check pilot.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
The other major difference noted regarding salaries for flight
7
47
Conclusions
instructors was between provincially recognized colleges versus
private flight instructor operators. A flight instructor (aviation and
flight technology) at a community college would have an average
salary of $51,000 while the chief flying instructor would have an
average salary of $55,000.
The economic recovery of the aviation industry and a changing
labour market for licensed aviation personnel has introduced new
challenges for all employers of licensed aviation personnel with
respect to managing recruitment, retention, and compensation. In
response to these challenges, aviation industry employers have
Benefits
responded in a variety of ways depending on the size of their
operation, the segment of the industry in which they operate, the type
Interview findings on working environment and benefits also vary
of aircraft used and services offered, and if their operation has
greatly by the industry segment that the air operator is functioning in.
unionized employees. However, there are a number of significant
Smaller operators often offer routes or destinations which are very
and industry-wide developments which are noteworthy.
isolated and demanding on the pilot’s skills and experience. The
pilot, as an employee, may or may not have medical or dental
These include:
benefits but often does receive performance bonuses if the company
makes a profit.

A significant increase in pilot salaries. Between 1995 and 1996
salaries for pilots increased 10.3% according to Statistics
Canada’s Civil Aviation Report. According to our survey of
compensation practices, firms reported, on average, that they
expect a base salary increase of 3% in 1999 for the three
benchmarked positions. Finally, a 1998 salary survey of
business aviation reported a 6% increase in compensation for
pilots between 1997 and 1998.

An increased use of pilot retention programs. The DND, a
significant Canadian employer of pilots, has launched a retention
allowance program which rewards upwards of $75,000 for
Larger operators tend to offer generous benefits packages which
include uniform allowances, per diems, reduced travel on the
operator’s and its partner’s fleets, and a restriction on the number of
hours worked. Often, the choice of working hours depends on
seniority, but a pilot in the middle of the seniority list can expect as
many days off as he/she will be flying.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
experienced pilots. Private sector operators have offered profit
sharing schemes, better training opportunities, and performance
bonuses.
48
More importantly, it should be noted that not all aspects of the Civil
Aviation Program are experiencing the same level of difficulty in the
recruitment and retention of licensed aviation personnel. However,

Benefits programs and the working environment have been
reviewed and enhanced. Carriers with unionized shops have
decreased the number of hours flown by pilots and typically have
benefits packages including uniform allowances, per diems, and
discounted travel policies. Often these policies set the standard
for other airlines that may or may not have a union.
the Department continues to use a homogeneous approach to the
management of its human resources across the entire Civil Aviation
Program. This approach to human resources management is the
foremost example of how the Department distinguishes itself from its
industry counterparts and, as a result, puts TC at a competitive
In comparison, TC has experienced a long-term wage freeze that was
disadvantage in recruiting and retaining licensed aviation personnel.
introduced by the federal government in the early 1990s for all
This conclusion is evident in the following discussion of the
employees. As a result of this wage freeze, the salary gap with the
Department’s specific challenges regarding recruitment, retention,
industry has continued to widen, even taking into consideration the
and compensation.
fact that TC pays overtime to its licensed aviation personnel, which
is an uncommon practice in the industry. Moreover, despite a
Nationally, external recruitment of CAIs from April 1995 to April
changing business environment in the airline industry and an
1997 had not met the pace of CAI departures (attrition) from TC.
evolution of the role and the service delivery model of the
Department, TC has continued to use the same human resource
PricewaterhouseCooper’s review of the current situation in the Civil
management practices regarding recruitment, retention, and
Aviation Program at TC does support the management’s concerns in
compensation that it has relied on in the past. Hence, it has become
increasingly difficult for TC to respond to the business cycles of the
aviation industry and to manage effectively the dynamics of the
regards to recruitment and retention of CAIs. According to Aircraft
36
Operator (AO) distribution rates (Allocation/Strength), derived
from TC TIPS data, the total allocation of staffed AO’s positions for
evolving labour market for licensed aviation personnel.
36 The AO section is the classification group in which the CAI population resides in TC.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
49
the TC Civil Aviation Program should be at 403 inspectors while
total current strength lies at 356.5 inspectors, or at 88.5% of
37
operational levels.
From our review it could be suggested that the service lines which
are experiencing difficulties in recruiting and retaining licensed
aviation personnel, specifically CBA, are a result of the competitive
However, it should be noted that this trend has not been the case for
labour forces which are occurring in the corresponding private sector
all regions or service lines. In fact, some of the regions and/or
segments that those service lines regulate.
service lines have been relatively more successful in filling vacancies
and managing attrition. For instance, the CBA branch is at 80.7% of
Typically, the private sector compensation model for employers of
operational allocation nationally but when the specific programs
licensed aviation personnel reflect the competitive labour forces
within the branch are examined, it was discovered that there are
which confront that employer based on its industry segment and the
significant staff shortages at the large air carrier program (7th Region)
role of the employee in question. While TC recognizes that the level
which is at only at 78.4% of operational allocation.
of technical expertise and complexity of the regulatory environment
differs between service lines, and hence requires different
Correspondingly, when certain regions were cross tabulated with the
classification levels, it does not reflect at a sufficient level in its
CBA branch, it was found that the Ontario Region, at 81.8% of
compensation practices the differences in the competitive labour
allocation, and the NCR region, at 85% of allocation, were also
market that cross service lines.
suffering from significant staff shortages. In comparison, other
service lines, such as aircraft maintenance and manufacturing and
As a result, the Department removes its ability to respond to labour
regulatory services, both at 100% of allocation, and general aviation,
market pressures to the same degree that its private sector
at 94% of allocation, seemed to be more successful at retaining their
counterparts for the areas of the industry where the competitiveness
staffing levels at or close to allocation.
for skilled and experienced individuals that possess the certification
and the qualifications required by TC is the strongest. Additionally,
37 Allocation/Strength levels as of September 21st, 1998.
the narrowness of salary bands between classification levels makes it
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA
difficult for TC to promote or encourage line staff to move across
The following dimensions should be taken into account when
service lines or to transfer between regions restricting the
developing a long-term strategy:
50
Department’s ability to best manage and develop its workforce.

The establishment of a compensation package with a greater
degree of flexibility that would take into account specific labour
market pressures in the various segments of the aviation sector.
This flexibility would include the widening of the salary bands
between the different classification levels to distinguish between
the degree of complexity but also the effect that these variables
have on the competitiveness of compensation within the labour
market. The compensation package must take the Department to
a competitive level were the CAI’s role in aviation safety is
perceived to be an attractive alternative to those individuals in
the industry seeking a career change. Compensation packages
could include measures beyond the basic salary structure and can
include allowances or bonuses that are often found in the private
sector.

Develop recruitment campaigns and policies that promote the
positive factors of a career with TC. These include the level of
responsibility, the working environment, and the uniqueness of
the CAI’s regulatory role. These factors were noted in staff
interviews as important in making the Department an attractive
alternative to the private sector while noting the unique culture in
which the licensed aviation personnel develop their skills and
experience.

Target those individuals who have come to a point in their career
where a senior pilot position on the line or a management
position with the carrier no longer provides them with the
lifestyle, working environment, or professional challenges they
are seeking in their career.
Other employers of licensed aviation personnel expressed similar
opinions about TC’s benchmarked position in the aviation labour
market and have distinguished between the different segments of the
industry, covered by TC’s various service lines within CBA and GA,
when addressing issues of recruitment, retention and compensation.
It must be concluded that TC needs to position itself as an employer
who is both attractive and competitive. This can be achieved
through the renewal of TC’s human resource practices, the effective
promotion of the essential role of the inspector in ensuring aviation
safety and the creation of a competitive compensation and benefit
package that recognizes the forces of a competitive labour market for
licensed aviation personnel. In order to begin this process of
renewal, TC needs to develop a long-term strategy to provide it’s
management with the tools necessary for the effective administration
of the CAI population and the creation of the required working
environment to attract and retain a skilled and motivated workforce
TC needs.
A REVIEW OF THE CIVIL AVIATION INSPECTOR COMMUNITY AT TRANSPORT CANADA

Strengthen and revise existing exchange programs to again
encourage exchanges within the Department and with the
industry at large. Use these exchange programs to support the
development of a career path for all inspectors that are
achievable and affordable to the Department.

Address the hurdles that a manager must overcome in order to
fill a vacancy. The issue of portraying the Department as an
attractive and competitive alternative to the industry is as
important as establishing the tools necessary for management to
effectively interact with an increasingly competitive labour
market. All efforts in managing the problem of recruitment will
fail if management does not have the flexibility to respond to
potential candidates in a timely manner.

The Department should consider a strategy of complementing
‘off the shelf’ skill sets obtained through experienced industry
recruits with the development and sustainment of essential skills
internally through a diversified approach. This approach could
include; traditional training provided by the Department, the
strengthening of the line-flying program.
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