An arbitrator has sided with Air Canada, choosing its final offer over that put forward by its 3,000 pilots, ending the long-simmering contract dispute.
But it is unlikely to resolve morale and labour troubles at the airline.
“Air Canada pilots are angry at the way they have been treated by the government and their employer,” according to a statement issued by the Air Canada Pilots Association after Douglas Stanley released his decision Monday.
“Arbitration has imposed work rules that will cost many pilots their jobs, demoralize the rest and kick other important issues years down the road, where they will fester and undermine any effort to achieve positive culture change at our airline.”
“It’s been rigged from the beginning,” said Paul Strachan, president of the Air Canada Pilots Association, in an interview. “It’s basically worse than the agreement that our members rejected last year.”
The five-year deal, which expires on April 1, 2016, calls for wage increases of 2 per cent, 5 per cent, 3 per cent, 2 per cent and 2 per cent.
Stanley said in his ruling that he accepts Air Canada’s argument that it needs to establish a low-cost carrier to ensure its competitive future.
Pilots feared the airline was targeting the long-standing scope clause, which in the airline industry dictates that a contract covers pilots flying a certain type of aircraft, and ensures that regional affiliates can’t do the same without being covered by the mainline contract.
Air Canada has made it clear that it wants to start a discount airline to destinations in Europe and down south, but the only way to make it work is to pay pilots less and establish different work rules, such as longer duty days.
Air Canada argued the existing scope language “limits its ability to enter into commercial arrangements with other airlines,” to start a low-cost carrier to compete with the likes of WestJet Airlines.
Strachan believes the new contract will weaken scope protections, saying “this is the beginning of the outsourcing and offshoring of Air Canada pilots.”
This was the last remaining contract to be settled at Air Canada, which has faced a year of labour troubles – with a brief strike by customer service workers last summer, threatened strikes and lockouts that were blocked by the federal government, and wildcat job action including a sickout by pilots.
The airline said in a news release that the five-year deal preserves pilots’ compensation and benefits, and at the same time provides the “company with the necessary flexibility to compete effectively in the current industry environment.”
“The conclusion of this, the last outstanding agreement with our main labour groups in Canada, brings closure to a long and difficult round of labour negotiations,” said Calin Rovinescu, president and CEO.
The pilots were the first group to reach a tentative deal with the airline, even before the contract expired in March 2011.
But that tentative agreement was rejected by rank-and-file members over a two-tier pension system and the possible creation of a discount airline, which would mean different wages and work rules for pilots.
Upset over that deal, the pilots also voted out several top union executives, so a new bargaining team was not in place until the fall.
While renewed contract talks over the winter didn’t produce any agreement, Air Canada threatened to lock out its pilots in March, on the same day as baggage handlers and mechanics had served notice they would walk off the job.
Labour Minister Lisa Raitt quickly intervened, arguing that travellers could not be stranded during the busy March break, as well as citing concerns of an economic impact of a shutdown, so she blocked any job action.
Original Article
Source: the star
Author: Vanessa Lu
But it is unlikely to resolve morale and labour troubles at the airline.
“Air Canada pilots are angry at the way they have been treated by the government and their employer,” according to a statement issued by the Air Canada Pilots Association after Douglas Stanley released his decision Monday.
“Arbitration has imposed work rules that will cost many pilots their jobs, demoralize the rest and kick other important issues years down the road, where they will fester and undermine any effort to achieve positive culture change at our airline.”
“It’s been rigged from the beginning,” said Paul Strachan, president of the Air Canada Pilots Association, in an interview. “It’s basically worse than the agreement that our members rejected last year.”
The five-year deal, which expires on April 1, 2016, calls for wage increases of 2 per cent, 5 per cent, 3 per cent, 2 per cent and 2 per cent.
Stanley said in his ruling that he accepts Air Canada’s argument that it needs to establish a low-cost carrier to ensure its competitive future.
Pilots feared the airline was targeting the long-standing scope clause, which in the airline industry dictates that a contract covers pilots flying a certain type of aircraft, and ensures that regional affiliates can’t do the same without being covered by the mainline contract.
Air Canada has made it clear that it wants to start a discount airline to destinations in Europe and down south, but the only way to make it work is to pay pilots less and establish different work rules, such as longer duty days.
Air Canada argued the existing scope language “limits its ability to enter into commercial arrangements with other airlines,” to start a low-cost carrier to compete with the likes of WestJet Airlines.
Strachan believes the new contract will weaken scope protections, saying “this is the beginning of the outsourcing and offshoring of Air Canada pilots.”
This was the last remaining contract to be settled at Air Canada, which has faced a year of labour troubles – with a brief strike by customer service workers last summer, threatened strikes and lockouts that were blocked by the federal government, and wildcat job action including a sickout by pilots.
The airline said in a news release that the five-year deal preserves pilots’ compensation and benefits, and at the same time provides the “company with the necessary flexibility to compete effectively in the current industry environment.”
“The conclusion of this, the last outstanding agreement with our main labour groups in Canada, brings closure to a long and difficult round of labour negotiations,” said Calin Rovinescu, president and CEO.
The pilots were the first group to reach a tentative deal with the airline, even before the contract expired in March 2011.
But that tentative agreement was rejected by rank-and-file members over a two-tier pension system and the possible creation of a discount airline, which would mean different wages and work rules for pilots.
Upset over that deal, the pilots also voted out several top union executives, so a new bargaining team was not in place until the fall.
While renewed contract talks over the winter didn’t produce any agreement, Air Canada threatened to lock out its pilots in March, on the same day as baggage handlers and mechanics had served notice they would walk off the job.
Labour Minister Lisa Raitt quickly intervened, arguing that travellers could not be stranded during the busy March break, as well as citing concerns of an economic impact of a shutdown, so she blocked any job action.
Source: the star
Author: Vanessa Lu
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