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Air Canada demands big cuts

$208 million in concessions asked of machinists union

NICOLAS VAN PRAET

The Gazette

Tuesday, March 11, 2003

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Members of Air Canada's largest union say airline managers have asked them to swallow $208 million worth of wage cuts and concessions as the company scrambles to pare its labour costs.

That's close to one-third of the $650 million Air Canada is now desperately trying to slash from its $3 billion a year wages-and-benefits bill in an attempt to shore up cash and compete with its low-cost rivals.

http://www.canada.com/montreal/specials/business/story.html?id=5B5A0415-F5EA-42F7-BAA9-036B1116C562

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Seeing that the IAM has already had layoffs, it will be interesting to see what the "concessions" will be. Once it is gone, you know it will never come back.

As for the vacation, that is something that comes with years put in,,, seems harsh to be going after that. Does that mean anyone with under 5 years will only have 1 week vacation a year?

Until the specifics roll down from the union, it remains pure speculation as to what will happen.

That's what makes this so much fun.....

Iceman

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I find this line "Yet another would give the airline the flexibility to outsource any work it deems uncompetitive." very disturbing! If the IAM concedes on this, this could be the end of baggage handling, cargo,any of the shops in maintenance. Also what might be conceived as competitive today, may be viewed as uncompetitive tomorrow and then outsourced.Eventually, you will end up with a Value Jet type organization.

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Guest jimmy

It's interesting that Mr. Milton says most of the savings can come from changes to work rules as opposed to pay cuts. How about we hold him to that?

AC employees look at your contracts. Are they efficient? If not, fix them. Not in the traditional "we'll only give it up if we get something in return" sense. Just do it or someone else will do it for you/us.

One small example is the flight attendants and their line bidding. How about a Solo or PBS style system? I know, you won't be able to milk the system and get double (or triple??) your holidays but the time has come. It's not 1976 anymore.

Talk to your unions and tell them to work with the company to save money in ways that make sense rather than just cutting wages.

It's in everyone's best interest.

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As is stated, you may very well be out of a job with these kind of demands, as stated you could end up with a shell of a company who's only employees are pilots and managers

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Guest ACempl

Hey Jimmy!

I appreciate your motivational comments. However, just for clarification, the union addressed this part of your posting already: ‘One small example is the flight attendants and their line bidding. How about a Solo or PBS style system? I know, you won't be able to milk the system and get double (or triple??) your holidays but the time has come. It's not 1976 anymore.’

This text, taken directly from a union newspaper, will maybe help to enlighten you: ‘…As with any negotiations, not every demand is met. For example, we sought a Preferential Bidding System similar to SOLO. Unfortunately, Air Canada would only consider a system not driven by seniority. Your Bargaining Committee was unanimous in rejecting that type of P.B.S. and remains committed to exploring a seniority driven P.B.S.’

So you see, Jimmy, this cost-saving attempt was attempted, and well before any announcement by the company about being in financial difficulty.

I hope this helped.

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Guest ACempl

Hey Jimmy!

I appreciate your motivational comments. However, just for clarification, the union addressed this part of your posting already: ‘One small example is the flight attendants and their line bidding. How about a Solo or PBS style system? I know, you won't be able to milk the system and get double (or triple??) your holidays but the time has come. It's not 1976 anymore.’

This text, taken directly from a union newspaper, will maybe help to enlighten you: ‘…As with any negotiations, not every demand is met. For example, we sought a Preferential Bidding System similar to SOLO. Unfortunately, Air Canada would only consider a system not driven by seniority. Your Bargaining Committee was unanimous in rejecting that type of P.B.S. and remains committed to exploring a seniority driven P.B.S.’

So you see, Jimmy, this cost-saving attempt was attempted, and well before any announcement by the company about being in financial difficulty.

I hope this helped.

P.S. We can get nowhere near double, never mind triple, our holoidays with our current bidding system.

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Guest jimmy

ACempl, thanks for the info. Let's just say I have received conflicting information.

By the way, the CUPE nogots and contract really make me scratch my head given the current concessionary situation. Why did the company sign it and then barely a month later want to change it? I'm really at a loss why the company wouldn't want a computer based bidding system like Solo. Think of the paper they'd save.

Reminds me of a quote, "Fact is stranger than fiction because fiction has to make sense".

jimmy

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Guest ACempl

Youare welcome Jimmy. By the way, you hit the nail on the head! Why the company/management does anything lately is beyond most of our logic!! Oh well, I will keep on working until they hand me my pink slip.

See you in the sky.

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