AVEOS closes the doors

[Rockie]

My sympathy goes out to the latest victims of corporate greed and government incompetence. Hopefully some sanity will return to this unfolding disaster and you will all be back working very soon. My fingers are crossed.

[CanadianEh]

That's a real shame. They will have no problems finding work, the issue will be where they have to go to get work.

[High and Behind]

For those that haven't seen it....

5 years later and they flush them all down the shitter.
AC employees should all walk off the job.
Time for the people to stand for what is right

http://www.cbc.ca/news/canada/manitoba/ ... anada.html

[twinpratts]

Wow... This is terrible news. It's hard to believe this could happen in this day and age.

[CID]

Yes this is shitty news but personally I don't see it as a result of any single part of Air Canada. Everyone has contributed over the decades to help it implode.

[Beefitarian]

To save the mods from having to edit a lot of bad language I will use a sarcastic euphemism.

Splendid.

[North Shore]

And another kick in the teeth: Union officials in Vancouver confirmed that employees at the Aveos plant there had been told to go home and leave all their equipment and personal items behind. Most engineers I know have a small fortune expended in tools and toolboxes. If you weren't cynical enough to see this coming, you now get to lose your tools indefinitely...

Good Luck guys!

[KISS_MY_TCAS]

My sympathy goes out to the latest victims of corporate greed and government incompetence. Hopefully some sanity will return to this unfolding disaster and you will all be back working very soon. My fingers are crossed.

The fact that Air Canada owes them over 80 million has little to do with government involvement, they haven't bailed them out again. Or should I say yet.

It isn't even corporate greed as much as it is horrible management. For AVEOS to hold on as long as they did that far in arrears with AC seems bold, one can again point the finger at Team Red's management, but to me it looks like the writing is on the wall for AC. Unfortunately there is a long list of casualties now and potentially in the future. I am sure Michel LeBlanc's mouth is watering, opportunity is on the horizon and there will be no shortage of resumes.

[azimuthaviation]

And another kick in the teeth: Union officials in Vancouver confirmed that employees at the Aveos plant there had been told to go home and leave all their equipment and personal items behind. Most engineers I know have a small fortune expended in tools and toolboxes. If you weren't cynical enough to see this coming, you now get to lose your tools indefinitely...

Good Luck guys!

Small fortune is a relative term. My tool set is about equal to my first year and a half wages in this industry. The only way I would leave the building without them is after having shoved them down someones throat. Most likely either the guy who told me to leave them behind or the guy who tries to stop me from leaving with them.

And losing them indefinitely... could mean permamnently. If Im not mistaken if a company goes bankrupt owing money the creditors can seize theri proberty as well as anything inside, including employees tools, customer property etc and sell those to recoup their money.

[Meatservo]

And another kick in the teeth: Union officials in Vancouver confirmed that employees at the Aveos plant there had been told to go home and leave all their equipment and personal items behind. Most engineers I know have a small fortune expended in tools and toolboxes. If you weren't cynical enough to see this coming, you now get to lose your tools indefinitely...

Good Luck guys!

Small fortune is a relative term. My tool set is about equal to my first year and a half wages in this industry. The only way I would leave the building without them is after having shoved them down someones throat. Most likely either the guy who told me to leave them behind or the guy who tries to stop me from leaving with them.

And losing them indefinitely... could mean permamnently. If Im not mistaken if a company goes bankrupt owing money the creditors can seize theri proberty as well as anything inside, including employees tools, customer property etc and sell those to recoup their money.

Fu(k that. I'd be breaking in to get my stuff if I wasn't cynical enough to see it coming. Anybody tells me to leave without taking my own stuff with me better be a lot bigger than me. This is an outrage. I condone breaking and entering uder these circumstances. Hell, I'd be willing to help.

[kilpicki]

Sad news for sure. My guess is that 50% or more will leave the industry as they can't or won't move, some will get jobs doing the same type of work elsewhere (where Im not sure) and a small percentage will go to general aviation or the 3rd tier people.

But some of the people who have been in this large shop OH enviroment jusy don't cut it in the private sector where the type of work is completly different. Some can make the change but after 20 yrs in a union shop going to the Wells or Yellowknife is too much of a change in the work enviorment and they too will leave.
Thus the large turnout of the schools. What a racket.

[RB211]

I don't suppose Raitt and Harper will step in here to ensure these workers have thier tools so that they may continue to be positive contributors to this economic recovery?

The likelihood is there wil be plenty of opportunity for them. Unfortunately many of those positions will be overseas which may not be a viable option.

The aviation industry in Canada is, overall, sh*#ty. Glad I left it.

Best wishes to those concerned.

[Rockie]

The fact that Air Canada owes them over 80 million has little to do with government involvement, they haven't bailed them out again.

The slow motion destruction of Air Canada and its various components that have been sold off for profit is very much a result of corporate greed and government incompetence. Without even getting into the larger issue of a disappearing middle class and the economic activity it stimulates, loss of jobs and their migration out of the country is a critical social issue that is directly the government's responsibility.

[CID]

There's a very good reason to restrict access to the facility in these cases. For one, workers have been known to walk off with more than their own stuff in these cases and even damage a few things on the way out. Aveos will likely execute a very controlled retrieval of personal items in the next few days.

Secondly, this may just well be a temporary measure. They may just recall everyone in a couple of days. Who knows.

[Colonel Sanders]

Aveos will likely execute a very controlled retrieval of personal items in the next few days

I sure hope so. When a large multi-national, multi-billion-dollar company - which distinctly did not declare bankruptcy at the time, although they are certainly now on their way - no longer desired my services as am employee, they kept my personal items that I had on company property. After many months of wrangling I finally got my books, but they kept everything else - tools, electronic equipment, etc.

I sure hope it works out better than that for these guys.

[KAG]

someone please help me understand this...Why can'y you take YOUR personal tools off the job site? and how could you not get them back? those tools do not belong to the company, their yours, and as such no creditor should have access to them.
If I were the employees I'd be taking them with me, company rules be damned.

[Cap'n Tripps]

If someone has or keeps something that doesn't belong to them, isn't that theft? Call the cops!

[Mig29]

Sleazy bastards!!
They spun off this MTC department 4 years ago, made cash for their execs and then they just close the doors on the weekend on these people!!! I thought these workers performing maintenance checks were ALSO essential service, so how come the Minister allowed them to be essentially FIRED?!??

Can someone remind me please where do I exactly leave in????

[slowstream]

Sleazy bastards!!
so how come the Minister allowed them to be essentially FIRED?!??

First off, terrible news and I am so sorry to hear that news yesterday and my thoughts and hopes are with all those effected!

Good luck guys!


Mig29,

Excellant point! Where was Rait and the government putting a stop to this, it could hurt the economy, it could hurt the traveling public and its an essential service?

Please chime in Rait, I am holding my breath (please hurry) waiting for a reply.

[ruddersup?]

CID, you've got it correct. You have to close the doors with no access until an orderly retrieval of tools and personal gear can be organized. Probably with small groups. I had a friend who worked on the Arrow project and when A.V.Roe shut down it was bedlam. The employees got their stuff and everything else that was not nailed down.
Sure is easy to jump all over the company. It's time to get rid of Unions IMHO.

[BGH]

I have many friends whose tools ended up behind closed doors after a company failure.Each was asked to set up a pick up time & then let someone associated with the reciever have a look inside the box to ensure that none of the ex companies tools were in your possession.You were then assisted with the removal of your tools & signed a release saying that you did indeed recieve your tools.
Bit of a hassle,but ended well.
Daryl

[Road Trip]

Not to be all gloom and doom but maybe this isn't the worst of it. I know that AC has other options for maintenance but AVEOS seems to be the main supplier at this time. Is it even possible for the other contractors to pick up the slack in the short term?

In otherwords no maintenance = no planes being being serviced = alot of peoples flights getting cancelled.

How long can AC operate without AVEOS? Is this a minor road bump as competitor maintenance facilities pick up the slack or is it a show stopper grounding a good portion of the fleet for an undetermined amount of time?

[Northern Flyer]

From what I understand watching the news tonight. AVEOS closed their doors because AC is behind on 80 million in payments to the company. Allegedly AC offered them 50 million today to complete the projects that have already been started though it has not been announced whether or not AVEOS will accept.

Why would any other private company want to do business with AC?

[teacher]

Aveos layoffs could cause flight cancellations

Air Canada said Monday it could be forced to cancel flights and strand thousands of passengers if the maintenance company that obtained creditor protection Monday is unable to complete repairs to several planes.

The development represents more woes for the beleaguered national carrier, which has been hit by a string of labour disputes.

The threat of cancelled flights came in a Montreal court during a creditor protection hearing. The airline's lawyers argued in vain Monday for a Quebec Superior Court to order Aveos Fleet Performance Inc. to not lay off more workers and meet its obligations to complete the repairs.

Right now, three Air Canada widebody planes and several narrowbody aircraft are sitting in Aveos facilities across the country, some missing landing gear. If the planes aren't serviced, delays affecting 3,000 passengers could ensue, warned Air Canada lawyer Louis Belanger.

Belanger said the next 24 to 48 hours will be crucial in determining if the aircraft repairs can be completed on schedule.

Monday night, in an apparent bid to avoid any air disruptions, Air Canada announced it would extend $15 million in financing to Aveos. In a statement, Air Canada said the money was to "assist in stabilizing Aveos for the benefit of its stakeholders and employees so that it can proceed with a more orderly restructuring."

In the statement, the airline said it hoped the money would allow Aveos to reopen some operations that Aveos said it would close, and avoid threatened layoffs. The financing offer is subject to court approval.

Earlier, in a Montreal court, Justice Mark Schrager denied an Air Canada request that would have forced Aveos to maintain operations and employment to complete the contracted repairs.

"Accommodation, if there is any between Aveos and Air Canada, is going to be made in a boardroom, not a courtroom," he said before granting creditor protection Monday.

Aveos was once Air Canada's technical services division, but was later spun off as a separate company.

On Sunday, it served notice to employees that it will shut its heavy maintenance operations in Montreal, Winnipeg and Vancouver, laying off approximately 2,400 employees.

On Monday, the company filed for protection under the Companies' Creditors Arrangement Act.

At first, Air Canada played down the significance of the closures.

"These events at Aveos, while disappointing, have no impact on Air Canada's day-to-day aircraft maintenance and repair activities," the airline said, explaining that its daily upkeep is handled in-house.

"The airline typically performs its line maintenance activities overnight or between flights, as necessary," the statement explained.

Meanwhile, the International Association of Machinists and Aerospace Workers says Air Canada caused the problems at Aveos by sending its heavy aircraft maintenance business to other providers.

It said the layoff of Aveos workers is a violation of the Air Canada Public Participation Act and it wants the federal government to intervene and save their jobs.

"We want the federal government to intervene, otherwise a viable industry and its highly skilled workers will vanish forever," said Dave Ritchie, Canadian General Vice President of the IAMAW.

The union contends the government and Canada Industrial Relations Board should have done more to ensure Aveos was financially viable before approving the transfer of workers from Air Canada.

Aveos argues Air Canada is responsible for $10 million in severance payments owed to laid off airframe workers.

Shutdowns prompt protest

The Aveos announcement prompted scores of employees to protest. About 1,000 workers blocked access to an Air Canada building near Montreal's Pierre Elliott Trudeau International Airport Monday morning, while a few kilometres away another group blocked access to an Aveos facility.

Reporting from the scene of the picket at 500 Cote Vertu West, CTV Montreal's Cindy Sherwin said the employees simply want answers.

Aircraft technician Rehan Sheikh said he was floored when his manager phoned to inform him of the shutdown late Sunday afternoon.

"Basically he told me that Aveos has closed down. It's shut down, don't come into work on Monday," Sheikh said.

"It's pretty traumatizing to find out like that. I mean, at least give us a two week notice or something like that."

Air Canada maintenance work accounts for an estimated 90 per cent of Aveos' business.

In its court filing, Aveos said it has been hurt by "uncertain work volume" across all its business lines from its main customer Air Canada and high labour costs.

"Since the beginning of 2012, Air Canada has reduced, deferred and cancelled maintenance work with Aveos, which has resulted in $16 million lost revenue in less than two calendar months," said its court petition.

"While Aveos remained ready, willing and able to perform such work, the loss of such work has been devastating to Aveos' financial position."

Aveos said it was owed $60 million, mostly from Air Canada. As of January, its liabilities exceeded the book value of its assets by $165 million.

The company said it lost nearly $49 million before taxes in the fourth quarter and $9.5 million in the first nine months of last year.

Weekend woes

The protests come after a weekend of confusion, delays and cancellations for Air Canada.

The airline appeared to be back to business as usual Monday, although the departure schedule posted on the Greater Toronto Airport Authority website showed Air Canada flights to Ottawa, Montreal, Winnipeg and Seattle were all cancelled. Only one non-Air Canada flight, a Dallas-bound WestJet/American Airlines - was cancelled.

Disruption and frustration loomed over what is typically one of the year's busiest travel periods this weekend, as Air Canada coped with a confluence of factors including weather, fire and an unusually high rate of illness among its pilots.

The woes began Sunday, when flights, mostly out of Montreal, were cancelled or delayed. The disruptions came after several pilots called in sick, creating crew shortages.

The airline has since confirmed that the resulting disruptions were caused, in part, by "higher-than usual pilot book-offs."

"While Air Canada supports the right of its employees to book off when they are unwell or otherwise unfit to work, we cannot condone such activities as part of industrial action to disrupt our operations and we have asked the CIRB (Canadian Industrial Relations Board) to intervene," Air Canada spokesperson Peter Fitzpatrick wrote in a statement to CTV News.

Travellers were frustrated again on Sunday, after an electrical fire knocked out the lights on one of Toronto Pearson International Airport's five runways. With a blanket of thick fog rolling across the region, the runway was shut down.

Air Canada and other airlines were forced to cancel or delay more flights as a result. And by the time the runway was returned to service in the afternoon, the ripple effects were already cascading through airline schedules across the country and beyond.

The weekend-long woes came at an inopportune time for travellers making their way home from March Break holidays, and just days after the Senate passed back-to-work legislation intended to prevent labour disruptions at the airline.

Labour Minister Lisa Raitt tabled that legislation after referring threatened lockouts by its pilots and ground crew unions to the CIRB.

Air Canada is currently locked in a contract dispute with the unions representing its 3,000 pilots and its approximately 8,600 baggage handlers and ground crew.

With a report from The Canadian Press

http://www.ctv.ca/CTVNews/TopStories/20 ... ct-120319/

[Sheila]

The fact that Air Canada owes them over 80 million has little to do with government involvement, they haven't bailed them out again.

The slow motion destruction of Air Canada and its various components that have been sold off for profit is very much a result of corporate greed and government incompetence. Without even getting into the larger issue of a disappearing middle class and the economic activity it stimulates, loss of jobs and their migration out of the country is a critical social issue that is directly the government's responsibility.

Now this becomes more clear for me because it is another axe chop. I am suspecting they will not do anything to save Air Canada .....,....by getting rid of ....Air Canada. You're suggesting no one will be able to afford to fly and that I can see as well.