Arbitrator Approves Air Canada Pilot Deal!!
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Arbitrator Approves Air Canada Pilot Deal!!
July 31, 2012
A Canadian government-appointed arbitrator chose to enforce Air Canada's final offer over one proposed by the union representing its 3,000 pilots, ending a long and bitter contract dispute but angering the pilots.
Air Canada, Canada's biggest airline, said the agreement preserved compensation and benefits for its pilots near the top of industry levels and helped to ensure the sustainability of the company's defined benefit pension fund.
"At the same time, it provides the company with the necessary flexibility to compete effectively in the current industry environment," Air Canada chief executive Calin Rovinescu said in a statement.
The Air Canada Pilots Association (ACPA), which has been in on-off talks with Air Canada for more than a year, was swift to condemn the decision by arbitrator Douglas Stanley and suggested that it may affect the safety of the airline as pilots are disillusioned and distracted.
"Air Canada pilots are angry at the way they have been treated by the government and their employer," ACPA said in a statement.
"The safety and professionalism that passengers expect from Air Canada pilots have been put at risk by a corporate culture that refuses to recognise or value our contributions," it said.
A key issue in the talks was Air Canada's desire to launch a separate discount airline, which it says is crucial to future profitability. Pilots strongly oppose the plan, fearing it puts their job security and benefits at risk.
Pilots rejected a tentative agreement reached by its union with the carrier in May 2011, largely because it proposed the creation of a low-cost airline subsidiary.
ACPA president Paul Strachan said the new contract did make mention of a low-cost operation, but did not give further details. He said the agreement also included terms increasing the number of flight hours per month for pilots from a maximum of 90 hours to 118 hours.
"We're taking a step decades back in time in terms of allowable flight time here," he said in an interview.
Air Canada said it would not comment further on details of the new five-year agreement, which will run until April 1, 2016, while it was discussing it with its employees.
The previous agreement expired on March 31, 2011.
"With the final offer selection announced, I expect that more details will begin to emerge from Air Canada regarding its previously announced intention to start a low-cost carrier operation," said Robert Kokonis, managing director of AirTrav, an airline consulting company.
BINDING ARBITRATION
Canadian Labour Minister Lisa Raitt appointed Stanley in May after the Canadian government in March halted a planned work stoppage at Air Canada sparked by the airline's decision to lock out its pilots after negotiations failed to reach a deal.
The government, arguing that a shut down of Air Canada would harm Canada's fragile economic recovery, passed legislation to prevent Air Canada's pilots, as well as its mechanics and baggage handlers, from striking and the airline from locking them out.
That legislation sent contract disputes for the two unions to binding arbitration.
"I respect the decision made by Mr. Stanley and am glad that the dispute between Air Canada and the ACPA has reached a conclusion that will ensure stability for the economy, and Canadians," Raitt said in a statement.
Despite the government intervention, Air Canada's operations were hurt by wildcat strikes involving members of both unions in March and April. The short-lived strikes caused a string of flight cancellations across the country.
Both unions have challenged the government law as unconstitutional.
The arbitrator's decision on the pilots' contract follows a separate ruling on June 17, in which an arbitrator chose to enforce Air Canada's final offer, rather than a union-proposed offer, for 8,600 mechanics, baggage handlers and cargo agents.
ACPA said federally imposed arbitration could not bring about the "energised and motivated professional pilot group Air Canada needs to succeed."
"Instead, arbitration has imposed work rules that will cost many pilots their jobs, demoralise 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," ACPA president Paul Strachan and chairman Jean-Marc Belanger said in a statement.
(Reuters)
A Canadian government-appointed arbitrator chose to enforce Air Canada's final offer over one proposed by the union representing its 3,000 pilots, ending a long and bitter contract dispute but angering the pilots.
Air Canada, Canada's biggest airline, said the agreement preserved compensation and benefits for its pilots near the top of industry levels and helped to ensure the sustainability of the company's defined benefit pension fund.
"At the same time, it provides the company with the necessary flexibility to compete effectively in the current industry environment," Air Canada chief executive Calin Rovinescu said in a statement.
The Air Canada Pilots Association (ACPA), which has been in on-off talks with Air Canada for more than a year, was swift to condemn the decision by arbitrator Douglas Stanley and suggested that it may affect the safety of the airline as pilots are disillusioned and distracted.
"Air Canada pilots are angry at the way they have been treated by the government and their employer," ACPA said in a statement.
"The safety and professionalism that passengers expect from Air Canada pilots have been put at risk by a corporate culture that refuses to recognise or value our contributions," it said.
A key issue in the talks was Air Canada's desire to launch a separate discount airline, which it says is crucial to future profitability. Pilots strongly oppose the plan, fearing it puts their job security and benefits at risk.
Pilots rejected a tentative agreement reached by its union with the carrier in May 2011, largely because it proposed the creation of a low-cost airline subsidiary.
ACPA president Paul Strachan said the new contract did make mention of a low-cost operation, but did not give further details. He said the agreement also included terms increasing the number of flight hours per month for pilots from a maximum of 90 hours to 118 hours.
"We're taking a step decades back in time in terms of allowable flight time here," he said in an interview.
Air Canada said it would not comment further on details of the new five-year agreement, which will run until April 1, 2016, while it was discussing it with its employees.
The previous agreement expired on March 31, 2011.
"With the final offer selection announced, I expect that more details will begin to emerge from Air Canada regarding its previously announced intention to start a low-cost carrier operation," said Robert Kokonis, managing director of AirTrav, an airline consulting company.
BINDING ARBITRATION
Canadian Labour Minister Lisa Raitt appointed Stanley in May after the Canadian government in March halted a planned work stoppage at Air Canada sparked by the airline's decision to lock out its pilots after negotiations failed to reach a deal.
The government, arguing that a shut down of Air Canada would harm Canada's fragile economic recovery, passed legislation to prevent Air Canada's pilots, as well as its mechanics and baggage handlers, from striking and the airline from locking them out.
That legislation sent contract disputes for the two unions to binding arbitration.
"I respect the decision made by Mr. Stanley and am glad that the dispute between Air Canada and the ACPA has reached a conclusion that will ensure stability for the economy, and Canadians," Raitt said in a statement.
Despite the government intervention, Air Canada's operations were hurt by wildcat strikes involving members of both unions in March and April. The short-lived strikes caused a string of flight cancellations across the country.
Both unions have challenged the government law as unconstitutional.
The arbitrator's decision on the pilots' contract follows a separate ruling on June 17, in which an arbitrator chose to enforce Air Canada's final offer, rather than a union-proposed offer, for 8,600 mechanics, baggage handlers and cargo agents.
ACPA said federally imposed arbitration could not bring about the "energised and motivated professional pilot group Air Canada needs to succeed."
"Instead, arbitration has imposed work rules that will cost many pilots their jobs, demoralise 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," ACPA president Paul Strachan and chairman Jean-Marc Belanger said in a statement.
(Reuters)
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Well before a million people jump on here and start talking about unions vs non unions. Just consider this...You work for a company that has consistantley lost money and all the employee groups are taking massive concessions (Yes, some of this is required to assure the viability of the company). The Government intervenes and imposes arbitration and the company wins 5 out of 5 arbitrations. Yet the management of this airline votes themselves double digit increases and bonuses and incresed benefits. Former CEO's are walking away with millions and millions. union or non union, this is not a good enviroment at any company. A First Officer at Air Canada would now be required to take a 43.5% pay CUT to UPGRADE to CAPTAIN and fly the Low Cost equivalent.....The union leaders summed it up as saying. "They may have won the arbitration but they lost us in the process". Whereas before , pilots would usually go the extra mile for the company and help them out, I think it is fair to say that is unlikely to happen in the future. 6 out of my last 10 flights required a concession from the crew to operate the flight to remain legal contractually prior to this ruling. I would be thinking twice about that now. I actually feel sorry for our passengers more than anything as all 6 of those flights would have been cancelled or at least delayed 12 hours....It is pretty sad but indicative of the situation here.
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Didn't the Canadian folks prove with the Keller award that binding arbitration in Canada isn't binding if you get the right judge?
ACPA can also hire USAPA if they need more help on this issue.
Just remember, 'Son, the government won't let Air Canada go out of business.'
I have been assured elsewhere here that the downward spiral of the airlines is over and the rebuilding phase has begun.
ACPA can also hire USAPA if they need more help on this issue.
Just remember, 'Son, the government won't let Air Canada go out of business.'
I have been assured elsewhere here that the downward spiral of the airlines is over and the rebuilding phase has begun.
sarcasm/USAPA has done enough for aviation without exporting their talents./end sarcasm
GF
GF
Last edited by galaxy flyer; 5th Aug 2012 at 03:54.
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Furthermore on Microburst...
They have in fact eliminated the strikes, but the management don't comply with the rest of the mandatory agreement 
What will do the Canadian government in this case of non compliance?
Wish best luck for all, Canadians and Spaniards...
What will do the Canadian government in this case of non compliance?
Wish best luck for all, Canadians and Spaniards...
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AC pays 30% more for some of its leases and pays for very large part of Jazz's costs. How can they possibly make money. The pilots have carried AC on their backs for years and management has raped it since RM hit the property
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Jazz might be a loser
I think that Jazz might also be a loser in this new AC pilot agreement. Jazz does not have the sole rights to AC's extra flying. I can see AC putting all this low cost flying out to the lowest bidder. There are lots of operators who could out bid Jazz on costs. Look at what Delta did to Comair. How low does AC want to go? Safety vs costs?
