Friday May 5, 2006
For Immediate Release
Toronto, ON – Wage negotiations between the International Association of Machinists and Aerospace Workers and Air Canada will go to arbitration in July.
Under provisions of the Company Creditors Arrangement Act (CCAA) signed in 2004, unions, including the IAM, representing Air Canada employees, were allowed to enter wage re-opener talks with the company in 2006. The intent of this provision was to allow workers to recover some of their wages lost during the restructuring, once the airline had returned to profitability.
Since emerging from bankruptcy protection in 2004, Air Canada has continually broke passenger load factor records and become profitable despite rising fuel prices. However, following two days of bargaining in Montreal this week, the company has made it clear it has no intention of sharing this success with the workers who made this profitability possible. “Based on the financial details it presented to our bargaining team, the company said it is not prepared to add to its fixed costs,” said IAM District 140 President and Directing General Chairperson Jim Coller. “The company seems to forget the $220 million contribution Machinist members made to keep this airline aloft in 2004. Air Canada became profitable in the first year of its five-year restructuring plan and I think our members deserve a share of those profits,” added Coller.
“Under the terms of CCAA, if the two sides can’t reach an agreement on a wage re-opener, the matter will proceed to binding arbitration since we are not allowed to strike. We now have pre-scheduled dates with an arbitrator in July,” he explained.
The IAM is the largest union at Air Canada representing over 10,000 station attendants, ground handlers, mechanics, maintenance technicians, logistics and supply personnel in the Technical Maintenance & Operational Support Group and 317 personnel in the Finance Group.
