T/A Vote
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Re: T/A Vote
Vanessa Lu
Business Reporter
More about
Air Canada»
Just a day after Air Canada’s pilots rejected a tentative contract, the airline’s customer service agents have given their union an overwhelming strike mandate.
With a 98 per cent strike vote, the Canadian Auto Workers union said Air Canada has underestimated employee frustration. About 80 per cent of 3,800 members voted.
The union has set a strike deadline of June 13 at 11:59 p.m. The CAW resumes negotiations with Air Canada on Tuesday with a federally appointed mediator.
“With this strong strike vote, our members have clearly demonstrated that they’ve had enough of being taken for granted by Air Canada,” said CAW President Ken Lewenza in a statement.
“What we’re looking for at the bargaining table is a fair and equitable settlement, not the many concessions and the destruction of our pension plan like Air Canada is demanding,” Lewenza said.
He said the union does not want to cause interruptions for the travelling public, but negotiations require flexibility from both parties, and “so far this has not been the case, with Air Canada showing little will to arrive at a new agreement.”
In a statement, Air Canada said it is business as usual for the airline and that customers can continue to book Air Canada flights with confidence.
“In the event of a strike, Air Canada will maintain a full operation and implement a contingency service plan at airports and call centres to minimize impact on customers,” said the airline, adding it is confident there is sufficient time to reach a deal.
The airline’s 3,000 pilots voted down its contract, upset over a proposed discount airline and significant pension changes. The union’s handling of negotiations has angered rank-and-file pilots so much that they booted out four union officials in recent weeks.
The Air Canada Pilots Association, which has not taken a strike vote, plans to regroup, fill those positions and consult with members before heading back to the bargaining table, likely not until next month.
The tentative collective agreement called for significant changes including the creation of a two-tier pension system in which new hires would fall under a defined contribution plan instead of the current defined benefit plan.
It also included a proposal for the new low-cost airline to Europe and so-called “sun” destinations. That would mean different wage scales and work rules.
Fred Lazar, a professor at York University’s Schulich School of Business, said it’s tough to be negotiator for either the unions or the company.
“The union says, ‘We have made a lot of sacrifices over the years, at what point do we start to recover?’ ” Lazar said. “But they just happen to be stuck in an industry that has been whipsawed since 2002.”
He added the pilots’ union needs to resolve its internal problems before the company can be assured it can bargain effectively for its members.
And while the airline says it would maintain operations in the event of a CAW strike, Lazar believes the airline could not operate a full schedule.
The industry’s recovery remains fragile as fuel prices rise, creating an estimated $800 million more on operating costs this year for Air Canada.
The carrier reported an operating loss of $66 million in the first quarter that ended March 31, compared with $136 million operating loss in the first quarter of 2010.
Jamie Ross, president of CAW Local 2002, said talks have been slow-going.
“When Air Canada was in trouble and asked for help, we gave. It’s our time to make progress,” Ross said. “The CEOs shouldn’t be the only ones compensated,” a reference to Air Canada president and CEO Calin Rovinescu, who earned $4.5 million in total compensation last year.
Air Canada is also negotiating with CUPE, which represents flight attendants and the IAMAW, which represents ground crews and mechanics.
Business Reporter
More about
Air Canada»
Just a day after Air Canada’s pilots rejected a tentative contract, the airline’s customer service agents have given their union an overwhelming strike mandate.
With a 98 per cent strike vote, the Canadian Auto Workers union said Air Canada has underestimated employee frustration. About 80 per cent of 3,800 members voted.
The union has set a strike deadline of June 13 at 11:59 p.m. The CAW resumes negotiations with Air Canada on Tuesday with a federally appointed mediator.
“With this strong strike vote, our members have clearly demonstrated that they’ve had enough of being taken for granted by Air Canada,” said CAW President Ken Lewenza in a statement.
“What we’re looking for at the bargaining table is a fair and equitable settlement, not the many concessions and the destruction of our pension plan like Air Canada is demanding,” Lewenza said.
He said the union does not want to cause interruptions for the travelling public, but negotiations require flexibility from both parties, and “so far this has not been the case, with Air Canada showing little will to arrive at a new agreement.”
In a statement, Air Canada said it is business as usual for the airline and that customers can continue to book Air Canada flights with confidence.
“In the event of a strike, Air Canada will maintain a full operation and implement a contingency service plan at airports and call centres to minimize impact on customers,” said the airline, adding it is confident there is sufficient time to reach a deal.
The airline’s 3,000 pilots voted down its contract, upset over a proposed discount airline and significant pension changes. The union’s handling of negotiations has angered rank-and-file pilots so much that they booted out four union officials in recent weeks.
The Air Canada Pilots Association, which has not taken a strike vote, plans to regroup, fill those positions and consult with members before heading back to the bargaining table, likely not until next month.
The tentative collective agreement called for significant changes including the creation of a two-tier pension system in which new hires would fall under a defined contribution plan instead of the current defined benefit plan.
It also included a proposal for the new low-cost airline to Europe and so-called “sun” destinations. That would mean different wage scales and work rules.
Fred Lazar, a professor at York University’s Schulich School of Business, said it’s tough to be negotiator for either the unions or the company.
“The union says, ‘We have made a lot of sacrifices over the years, at what point do we start to recover?’ ” Lazar said. “But they just happen to be stuck in an industry that has been whipsawed since 2002.”
He added the pilots’ union needs to resolve its internal problems before the company can be assured it can bargain effectively for its members.
And while the airline says it would maintain operations in the event of a CAW strike, Lazar believes the airline could not operate a full schedule.
The industry’s recovery remains fragile as fuel prices rise, creating an estimated $800 million more on operating costs this year for Air Canada.
The carrier reported an operating loss of $66 million in the first quarter that ended March 31, compared with $136 million operating loss in the first quarter of 2010.
Jamie Ross, president of CAW Local 2002, said talks have been slow-going.
“When Air Canada was in trouble and asked for help, we gave. It’s our time to make progress,” Ross said. “The CEOs shouldn’t be the only ones compensated,” a reference to Air Canada president and CEO Calin Rovinescu, who earned $4.5 million in total compensation last year.
Air Canada is also negotiating with CUPE, which represents flight attendants and the IAMAW, which represents ground crews and mechanics.
