Air Canada's unions ready to 'Walk the Line in '09'

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CD
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Air Canada's unions ready to 'Walk the Line in '09'

Post by CD »

Air Canada's unions ready to 'Walk the Line in '09'
Urgency In Talks

Scott Deveau, Financial Post
February 16, 2008

Union leaders at Air Canada say they would rather deal with the devil they know than one they don't during the expected bitter round of labour talks ahead and with ownership of the airline up in the air.

Last week, Robert Milton, the head of ACE Aviation Holdings Inc., effectively put the company's majority stake in Air Canada up for sale, having already held talks with private-equity players and pension funds interested in the airline.

He also didn't rule out including Air Canada in the current round of consolidation south of the border.

The news stuck in the craw of the airline's unions -- pilots, flight attendants, maintenance personnel and other employees -- that are digging in their heels ahead of labour agreements that expire in summer 2009.

ACE became a holding company for Air Canada's various subsidiaries when the airline emerged from bankruptcy in 2004. It has since whittled its ownership stake down in its frequent-flyer program, Aero-plan, its regional carrier, Jazz, and its maintenance unit, ACTS, and distributed the billions of dollars in proceeds to ACE's shareholders.

The distributions have embittered the unions, which gave up $1.1-billion in wages and benefits during the airline's restructuring. ACE intends to unwind itself in the first half of this year but will have to dispose of its 75% stake in Air Canada before it does.

Paul Lefebvre, president of IAMAW Airline Central Lodge 2323, which represents roughly 11,000 Air Canada employees, said, "They've basically strip-mined as much cash as they can out of it, and it's time for them to cash in all their chips and leave."

Mr. Lefebvre said IAMAW will look to win back some of the $220-million in wage cuts, lost vacation time and other work rules it gave up in the restructuring, especially now that the airline is profitable.

He said the union is willing to strike. "I'm asking people to start saving money to prepare for a strike. We believe there is no other alternative."

Meantime, IAMAW members are already sporting "Walk the Line in '09" paraphernalia on the job.

Air Canada's management has been trying to improve relations with unionized employees. For instance, it implemented an employee prof-it-sharing program, which produced $29.2-million last year.

But these efforts have fallen short of making any real change, according to Leslie ****, president of the CAW's Airline Division, which represents 5,000 Air Canada customer sales and service agents. She described the management style at Air Canada as being from the "dark ages."

"The whole concept of treating your employees right and they will treat your customers right ... is a concept that is lost on them," she said.

Still, Ms. **** said, she would rather negotiate a new labour pact with the current owners than try to carve out an agreement and relationship with a new owner.

"There's at least some comfort level in the devil you know because we're really heading into the unknown if the sale does take place," she said.
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twinpratts
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by twinpratts »

This is news...how?
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by yyz monkey »

Save up for a strike? I make 10.61/hr for 37.5 hours a week (about $1200/mth after taxes and dues) and the man wants me to save for a strike?

Good luck.

I'll be a pariah, but I'll be crossing the line if we strike. I don't have a choice.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by KAG »

yyz monkey wrote:Save up for a strike? I make 10.61/hr for 37.5 hours a week (about $1200/mth after taxes and dues) and the man wants me to save for a strike?

Good luck.

I'll be a pariah, but I'll be crossing the line if we strike. I don't have a choice.
Sure ya do, switch teams. I think swiss port will be looking for new hires about that time...
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by yyz monkey »

KAG wrote:Sure ya do, switch teams. I think swiss port will be looking for new hires about that time...
True, jumping ship is an option, but I'm looking to get into operations and off the ramp, so Swissport wouldn't be an option.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by mighty mouse »

I'll bet the government already has back to work legislation ready, just have to press the button. But, if Harper can last a little longer, just until 2009, ... maybe the government will be down for an election... that would be good timing:)
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by whiteguy »

mighty mouse wrote:I'll bet the government already has back to work legislation ready, just have to press the button. But, if Harper can last a little longer, just until 2009, ... maybe the government will be down for an election... that would be good timing:)
So much for being a private company???
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by tonysoprano »

We are a private company but also provide an essential service. There is no other airline in Canada that can take over the service magnitude AC provides. The obvious result would be a big hit on the economy within a matter of days. The government will have to let it go a few days but not much more. They have the legislative power to end a strike. While I personally don't think a strike will produce much for the pilot group, it seems to be the number one threat against the company right now. When the dust settles, there won't be too much excitement to report I'm afraid. 2009 has happened many times before. We haven't learned much.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Gurundu the Rat »

We are a private company but also provide an essential service. There is no other airline in Canada that can take over the service magnitude AC provides. The obvious result would be a big hit on the economy within a matter of days. The government will have to let it go a few days but not much more. They have the legislative power to end a strike.
It didn't seem that essential in 2003. They were ready to let us close the doors and these same people will legislate us back to work? It's not like we're in the medevac business. There are other options out there. Including government operated Via rail. Although from our govt I wouldn't be surprised.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by tonysoprano »

Gurundu. Legislating us back to work doesn't cost the government anything. Saving us from bankruptcy is not a government option because of the costs. Can't you just hear Albertan's crying foul? I'm just stating my opinion. I could be (probably are ?) wrong.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Four1oh »

Does AC have some sort of official designation stating they are an essential service? Or is it just assumed? :|
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by tonysoprano »

No. No official "essential service" status since AC became a private company. I use the term losely to describe what the government would consider it to be if the economy should suffer. I believe only crown corps can be labeled as such. But I'm told that the government can legislate anyone striking back to work and let an arbitrator decide what happens next.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Four1oh »

well, I wouldn't count on it, maybe hope for it, but don't count on it.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by tonysoprano »

Ya. I don't know. Anything can happen.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by rudder »

There is alternative domestic service on most routes and certainly 100% of the destinations that AC serves within Canada. Similarly, there are alternatives to AC to arrive at transborder and international destinations. It is Jazz that is the sole service provider using AC code to many medium and smaller Canadian cities and towns that could be viewed as 'essential'.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by twinpratts »

"It is Jazz that is the sole service provider using AC code to many medium and smaller Canadian cities and towns that could be viewed as 'essential'."

Interesting thought...
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Four1oh »

ok, maybe it's been asked before, but I don't remember. Will Jazz pilots picket with AC pilots when it comes time, or will they be flying their asses off?
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by tonysoprano »

There's the six million dollar question. :lol:
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Pratt »

tonysoprano wrote:No. No official "essential service" status since AC became a private company. I use the term losely to describe what the government would consider it to be if the economy should suffer. I believe only crown corps can be labeled as such. But I'm told that the government can legislate anyone striking back to work and let an arbitrator decide what happens next.
I think the gov't can label, and has, anyone as essential, regardless of whether they are crown corp or not. For example nurses, paramedics, fire fighters, police etc. Not alot of them are gov't employees but are certainly essential services.

I think it is pretty discretionary as to whom they give the designation to. IMO
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by rudder »

Four1oh wrote:ok, maybe it's been asked before, but I don't remember. Will Jazz pilots picket with AC pilots when it comes time, or will they be flying their asses off?
If history is the teacher, the answer is clear. During the last AC pilot strike, the connector line pilots did not fly a single flight on a struck AC route. The same cannot be said for the AC pilots during the connector strike.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Stick-Shaker »

By pure definition, AC probably isn't considered an essential service any longer. But practically speaking, it could be. Moving people is only one aspect. CPC and its affiliate Purolator Courier certainly move the bulk of the mail but every day AC also moves thousands of kilo’s of mail , freight and alike. Directly and indirectly, thousands of people across Canada are employed because of the national airline industry. Canada could function only short term before it would come unglued without AC planes in the air. Legislation would be quickly passed to force all striking labor groups back on the job. If you disagree, the only rebuttal I can offer is to wait and see. And when the Strike/Legislation comes, then there won't be any argument whether AC is essential or not (for better or worse)
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by bobcaygeon »

A year ago, back-to-work legislation was tabled to end the CN strike. It never got implemented because an agreement was made "surprise, surprise" (then voted down by the union members cause it sucked). The union was forced to later implement only rotating strikes to prevent Harper's government from waving the "big stick" again. Kind of reduces the union's "bark" to a whimper.

CN has a national competitor in the form of Canadian Pacific Rail, but was still ordered back to work.

IMHO That's the road AC will follow if they walk. A "Strike" is a +100 year old tactic that, for the most part, managements have figured out how to minimize. It's time to work on/use different tactics if union work forces are to be succesful in improving working conditions.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Gurundu the Rat »

Ya! I say we just fly in the complete opposite direction for a day. Supposed to go to Calgary? drop them off in Halifax instead. Could you imagine the chaos. I think the contract would be fixed to everyones satisfaction by 9am. :shock:
...or we can just go to arbitration... :butthead:
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Stick-Shaker »

bobcaygeon wrote:It's time to work on/use different tactics if union work forces are to be succesful in improving working conditions.
Agreed.
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Re: Air Canada's unions ready to 'Walk the Line in '09'

Post by Bede »

bobcaygeon wrote: IMHO That's the road AC will follow if they walk. A "Strike" is a +100 year old tactic that, for the most part, managements have figured out how to minimize. It's time to work on/use different tactics if union work forces are to be succesful in improving working conditions.
I know the tactic you should use: everyone short sells air canada stock or buys call options on WJA. Then you strike. Then you get legislated back to work. Then EVERYONE quits and cashes in their options. Then you retire. It only works if everyone quits though.
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