Air Canada Union Targets Olympics For Strike
03/07/2009 05:15
The Vancouver 2010 Winter Olympics have become a bargaining chip at Air Canada as the country's largest airline tries to overcome labor strife and avoid filing for bankruptcy protection.
Air Canada mechanics and technical staff, worried about losing their jobs to El Salvador, narrowly voted down a tentative 21-month labor pact that had been recommended by union negotiators, throwing the cash-strapped carrier's recovery strategy into jeopardy.
Chuck Atkinson, president of the union's District 140, said his members are hoping that the airline will offer job protection in return for labor peace during the Winter Games in February, 2010.
"It might be a black eye for Canada if there were a strike during the Olympics or if Air Canada went into bankruptcy protection before then," Mr. Atkinson said in an interview.
The surprise rejection of the labor pact thwarts Air Canada's plans to ask Ottawa for pension relief and blocks $600-million in loans required to avoid a filing for bankruptcy protection for the second time in six years. Export Development Canada, a federal Crown corporation, had been expected to lend about $250-million to help the airline survive the recession.
The International Association of Machinists and Aerospace Workers said Wednesday that it will return to the bargaining table later this week, with the aid of federally appointed mediator James Farley, a former Ontario judge.
Members of the IAMAW's largest bargaining unit will be asked to vote again, assuming the mediator is able to persuade management and labor negotiators to agree on a revised collective agreement.
Lorne Hammerberg, president of IAMAW Local 714, said many employees believe Air Canada is ignoring the contentious issue of whether aircraft repairs and maintenance will be shifted to El Salvador, where a sister company of Air Canada operates. Mr. Hammerberg said the union would gain bargaining clout as the Games approach.
"Everybody's focused on the Olympics for a potential strike," he said. "Air Canada is an Olympic sponsor, and our members wonder if it wants the 21-month contract to counter any labor dispute during the Games. It wouldn't be just about Air Canada. All the eyes of the world would be upon us, and a labor disruption would be the last thing both the company and Canadian government would want."
Montreal-based Air Canada declined to comment on a potential walkout, but in a statement, the carrier said that given the voting results, "the company and the IAMAW will meet promptly to discuss next steps in the process."
The "Official Airline" of the 2010 Games needs the support of all of its unions to ask Ottawa for permission to skip a $100-million pension payment due on July 30, another $60-million due on Aug. 14 and suspend further contributions until April 30, 2011. Air Canada faces a $615-million pension bill this year, but wants to defer $355-million of its scheduled contributions.
Vancouver organizers said last night that "it would be inappropriate to comment on internal discussions under way at the airline. Air Canada is a strong partner for the 2010 Winter Games and we have full confidence in their partnership with us."
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SWIVEL HIPS SAYS:
This is the kind of thing that just peeves me right off with unions, folks.