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Old 4th Apr 2004, 18:46
  #11 (permalink)  
YYC F/A
 
Join Date: May 2002
Location: Canada
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Looks like the unions have destroyed this airline finally......
just to tell you that the unions have finally destroyed the airline... banch of STUPID guys that beleive they are untouchable!!!
When a Reservation Sales Agent is getting $60,000+ a year at AC, and yet over at WestJet et al, it's barely half that, yes, I can see that (certainly in the case of a carrier stuggling to make a profit like AC) there needs to be some change.

But I don't think it's fair or reasonable to automatically blame the unions (and the unions alone) for the fall of AC.

Quite aside from the arguement that the Union's have already agreed to (collectively) billions of dollars in cuts, ultimately the real concern here is Air Canada's ability to deliver up a realistic and deliverable business plan for the future, and the total lack of trust, respect and confidence the workforce has in AC's leadership.

Revenues are down, passenger loads are down, millions of dollars of investment went into initiatives such as Tango which has now been scrapped, some are questioning the effectiveness of low cost carrier Zip which has been running with load factors heavily below that of WestJet....

AC has turned to labour cuts and layoffs, they've cut so deep in some cases that they have been desperately short of ground staff, huge lines for check-in, not enough ramp personnel to go around leading to delays, customer dissatisfaction....

There is no doubt that in today's climate, airlines need to be 'streamlined' and cost-efficient.

Union's have a vital role to play in bringing (often outdated) contracts into some form of line so that the gap between the Low Costs, New Entrant and Charter carriers and the established former flag carriers like AC is more realistic.

Worker's have a vital role to play, realising and accepting that as painful as it is, the $$$ need to be honed in somewhat, that work rules need to be changed, all to ensure the continued survival of their employer, and their longevity of employment.

But it's all to no avail if the airline management have no trust or respect from the workforce. And when you have a shaky business plan, a lack of direction AND a total breakdown in relations between workforce and top management, you have a model that (excuse the pun) just won't fly. No matter how deep you slash and burn the contracts and pensions.

British Airway's has risen from it's quarter's of losses, and is now turning to the future with a robust business plan, cost's down, and real results already showing through. They've got a long way to go yet. But BA is a prime example of how an airline can still be succesful despite operating in a heavily unionised (and higher cost) environment than it's competitiors.
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