As the deadline for an Air Canada strike or lockout nears, the union leader representing 5,200 Air Canada pilots says there has been progress at the bargaining table but hurdles to reaching a deal remain.

“We’ve seen some progress in the last day or two, but there’s still a gap as it relates to scheduling and wages,” Charlene Hudy, head of the Air Canada members at the Air Line Pilots Association, said on Thursday. “We will stay at the table as long as we possibly can to try and get to deal with Air Canada. So we’re still negotiating today, we’re still negotiating tomorrow.”

Canada’s largest airline and the union have been in contract negotiations for more than a year, and both sides will be in legal strike or lockout positions on Wed., Sept 18 after giving 72 hours’ notice.

A shutdown would halt some 670 flights a day, disrupting travel for tens of thousands of people and severing international connections flown by foreign airlines. Air Canada has said it will begin cancelling flights on Sept. 13, and will gradually shut down ahead of the Sept. 18 deadline in preparation for a strike or lockout.

In an interview at the union’s office near Toronto’s Pearson International Airport, Ms. Hudy said the pilots are seeking scheduling improvements that would allow them more days at home while earning more on the days they do work, as well as wages in line with those of their peers in Canada and the rest of North America. She declined to provide more details of the union’s demands.

“In most cases, [pilots at U.S. airlines] are paid twice as much. And in some cases that can be three times as much,” Ms. Hudy said. About 1,000 Air Canada pilots have second jobs, “to actually pay bills, put food on the table and pay off the debt they accumulated to become a pilot in the first place,” she said.

Air Canada pilot wages start at about $60,000 a year and rise according to seniority, plane flown and rank. Air Canada says captains – the most senior pilots – make between $215,000 and $352,000. Ms. Hudy disputes these numbers, saying most do not make close to this.

Air Canada did not immediately respond to emailed questions.

Business groups are urging Labour Minister Steven MacKinnon to prevent a shutdown and send the dispute to binding arbitration. However, Mr. MacKinnon on Wednesday refused to say what action he might take, if any.

“Shutting down [Air Canada] is big news because of its dominant size,” said W. Steven Tufts, a professor at York University. “My feeling is that the government will intervene with any work stoppage involving the pilots, if not pre-emptively, then after a day or two at most.”