Ms. Raitt referred the Air Canada labour disputes to the Canada Industrial Relations Board, asking it to examine the issue under the “maintenance of activities” section of the Canada Labour Code.
Under the code, no work stoppages are permitted if activities pose “an immediate and serious danger to the safety or health of the public.” With the CIRB reviewing the matter, Ms. Raitt effectively made it illegal for the strike and lockout to start on Monday as planned.
She said she did not know how long it will take for the board to complete its work.
“Given our fragile economy – you know, we’ve said before that a work stoppage is unacceptable,” she said, adding that she has asked the CIRB “to take a look at the case, and the facts of the two cases, to determine whether a work stoppage at Air Canada is going to have an effect on the health and safety of Canadians at large.”
On Thursday morning, Air Canada issued notice that it would lock out more than 3,000 pilots after delivering an ultimatum to union leaders to accept management’s latest offer.
The proposal lapsed at noon eastern time, and since the Air Canada Pilots Association did not accept it, management served its lockout notice to take effect at 12:01 a.m. ET on Monday.
Ms. Raitt has asked the CIRB to “determine the activities that Air Canada may be required to maintain as relates to the health and safety of Canadians,” Air Canada said Thursday afternoon. “As a result of this CIRB referral, the IAMAW cannot commence a strike and Air Canada cannot lock out its pilots at least until this matter has been determined by the board,” the country’s largest airline said. “There will therefore be no disruption of service and Air Canada's full schedule remains unchanged.”
In an earlier statement, Air Canada said protracted contract talks with unionized pilots already stretched beyond 18 months.
“We need to bring closure to the ongoing climate of labour uncertainty at Air Canada which is affecting our customers, destabilizing the company and our operations, and damaging the Air Canada brand,” said Duncan Dee, executive vice-president and chief operating officer.
The union had recommended rejection of the latest offer, but said it wanted let its membership decide the fate of the labour package.
Company negotiators delivered their final proposal in a bid to wrap up bargaining.
“The offer we tabled keeps our pilots’ salaries, pensions, benefits and working conditions in the top quartile. It also removes restrictions that constrain the company from being an effective competitor in a challenging industry that is growing evermore competitive on a daily basis,” Captain Rick Allen, Air Canada’s senior director of flight operations, said in a bulletin to pilots on Thursday.
Capt. Allen said management needs the flexibility to compete against rivals both on overseas routes and domestically.
WestJet Airlines Ltd. (WJA-T14.010.110.79%) plans to launch a regional airline by late 2013, placing further pressure on Air Canada.
“WestJet has made no secret of its intention to establish its own regional carrier and do so with a cost structure that is even below the already cost competitive structure of WestJet mainline. In the face of this reality, it would be irresponsible of us not to address these threats,” Capt. Allen said.
Less than four weeks into the six-month mediation process, Air Canada surprised the union, ACPA’s negotiating committee said in a memo to its members.
“The corporation chose to table what they characterized as its ‘best, last and final offer.’ The offer was essentially the same as the Jan. 29 offer with minor amendments,” the union’s bargaining team said.
APCA president Captain Paul Strachan said the track record of Ms. Raitt’s intervention in past disputes at Air Canada has been a concern. “It does affect the bargaining landscape, absolutely,” he said.
The tension between Air Canada and its employees comes as many Canadians prepare to travel on March break.
On Wednesday, the International Association of Machinists and Aerospace Workers served strike notice. The IAMAW, Air Canada’s largest union, said it would have been in a position to walk off the job at 12:01 a.m. on Monday. The 8,600-member union represents mechanics, baggage handlers, cargo agents, aircraft cleaners and electricians.
Pension reform, wages, scheduling night shifts, mandatory overtime and the role of part-time staff are among the key issues, according to IAMAW members.
The pilots are concerned about Air Canada’s plans to outsource more flights, notably to a proposed low-cost carrier to be based in Canada, with a foreign airline as a minority partner.
Management’s latest offer would have provided pilots with wage hikes of 2 per cent in the first year, 4 per cent in the second, 2 per cent in the third and 3 per cent in each of the final two years.
An overview of the five-year pact, attached to Capt. Allen’s bulletin, said that if management determines that amendments are required to the collective agreement related to the discount leisure airline, then ACPA will be consulted accordingly.
The proposed labour pact would also halt mandatory retirement for pilots at age 60, effective Dec. 15, 2012, subject to various conditions.
As well, new hires would be placed in defined contribution pensions, which are less costly than defined benefit plans that guarantee a certain level of payout on retirement.
Air Canada argues that its pilots are compensated fairly in wages and benefits, citing internal data that show 80 per cent of ACPA members earn more than $100,000 a year. About 13 per cent of Air Canada pilots collect more than $200,000 annually, excluding health and pension benefits, management submits.
Pilots receive $3,792 a year on average in health, dental and life insurance benefits, and they get an average of 12 to 18 days off each month, according to management.
Air Canada also asserted that its pilots are scheduled to work between 64 and 85 flying hours a month, and they took an average of 33.5 paid vacation days in 2010, including statutory holidays.
Capt. Strachan has a sharply different view, noting that during Air Canada’s 2003-04 financial restructuring, pilots took pay cuts of 15 to 30 per cent and agreed to other concessions. Pilots have yet to recover from those setbacks and pay rates are lower now than a decade ago, Capt. Strachan said.
Original Article
Source: Globe
Author: brent jang AND bill curry
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