Guest GDR Posted May 28, 2003 Share Posted May 28, 2003 Air Canada to cut 1,400 machinist jobs Canadian Press TORONTO — Air Canada reached a tentative deal with its machinists union late Tuesday that includes about 1,400 job cuts and could save the insolvent airline $180 million a year. The International Association of Machinists and Aerospace Workers, representing 11,000 Air Canada employees, said it preserved its pension, but will also give up vacation time, shift premiums and two holidays, as well as making other concessions. "It's this or it's the unemployment line,'' said Dave Ritchie, general vice-president of the union. "There ain't a kinder way to say it.'' Ritchie said a ratification vote by union members will be held "in a couple of weeks'' and the layoffs will be based on productivity moves. He added: "There's a lot of stuff here that's hard to swallow.'' Meanwhile, Air Canada continued cost-cutting talks with two other unions representing 10,000 workers at a downtown Toronto hotel, past the extended 9 p.m. ET deadline imposed by Justice Warren Winkler. Air Canada has been operating under bankruptcy-court protection since April 1. Earlier Tuesday, the airline's Jazz subsidiary announced it had reached tentative agreements with two more unions representing 2,200 workers. Jazz's deals are with flight attendants, represented by Teamsters Canada, and maintenance personnel, customer service staff and crew schedulers represented by the Canadian Auto Workers union. "In reaching these agreements, Jazz has completed negotiations with all its unions and has achieved total labour and management cost reductions of $110 million annually through a combination of productivity improvements and wage reductions,'' the regional airline said in a release. Details of the tentative agreements are confidential and subject to ratification by union members. Jazz employs about 900 customer service agents, 630 flight attendants, 650 maintenance staff and 28 crew schedulers. On Monday, the Canadian Auto Workers became the first of Air Canada's unions to accept a new labour agreement in a deal that will cost that union more than 800 jobs. That agreement is expected to save the airline $150 million a year. All of Air Canada's CAW members would also take a temporary pay cut of 10 per cent for two months starting June 1, and work rules will be eased for more flexibility. The new deal, still to be ratified by members, lasts for six years although it may be reopened for wage negotiations after three years. Air Canada Jazz CEO Joseph Randell said the subsidiary's tentative deals reached Tuesday "provide the increased productivity and cost reduction measures required to return Jazz to profitability.'' Last Saturday, Jazz announced it had reached tentative agreements with it pilots, represented by the Air Line Pilots Association, International, and with its dispatchers, represented by the Canadian Air Line Dispatchers Association. Air Canada Jazz operates a fleet of over 90 aircraft including Dash 8, Bombardier CRJ and British Aerospace 146 aircraft throughout Canada and the United States. Link to comment Share on other sites More sharing options...
Guest GDR Posted May 28, 2003 Share Posted May 28, 2003 Air Canada, union come to terms By KEITH McARTHUR From Wednesday's Globe and Mail Air Canada reached a crucial new contract Tuesday with its largest union, the International Association of Machinists and Aerospace Workers, that will save the insolvent airline $180-million a year. The IAM said 1,399 workers will lose their jobs, and the wages of those that remain will be reduced 1.5 per cent for three years. "Is this a happy day? Absolutely not. But this is a day that is needed to keep this airline flying," said Dave Ritchie, general vice-president of the IAM. Mr. Ritchie said his members are also being asked to give up one week's vacation a year, two statutory holidays and about half their sick days. They will lose premiums for working unpopular shifts and some overtime pay. The deal needs to be ratified by the union's 11,070 members, who include mechanics and baggage handlers. Mr. Ritchie said ratification will not be easy. Air Canada also said it has finalized new labour agreements with the four unions at its regional airline, Jazz, that represent $110-million in labour cost savings a year. But the airline was not able to get deals with its pilots, flight attendants and dispatchers by Tuesday's court-imposed deadline. The deadline, initially set for 5 p.m. (EDT) was extended to 9 p.m. by Mr. Justice Warren Winkler, a court-appointed facilitator. It was not immediately clear whether the deadline would be extended again. Air Canada spokeswoman Renée Smith-Valade said discussions were continuing with the unions. She said Judge Winkler had been briefed on the progress with the remaining unions. Air Canada, which filed for bankruptcy protection on April 1, has said it needs to cut $770-million from its annual $3-billion labour bill. It has secured a commitment for $540-million in labour savings, including the deals with the IAM and Teamsters Canada, which represents flight attendants at Jazz. On Wednesday, Air Canada announced a $150-million deal with the Canadian Auto Workers union. Another $100-million in savings will come from management layoffs and pay cuts. Meanwhile, the Air Canada Pilots Association filed notice in court Tuesday that it intends to appeal the court order appointing Judge Winkler as facilitator. The union said the appointment, by Mr. Justice James Farley of the Ontario Superior Court, put the court in an "adversarial and interventionalist" relationship with Air Canada and its unions. The motion says the order is unlawful and violates the "the principles of due process" and the rights of Air Canada pilots. It also contends that instead of facilitating labour talks, Judge Winkler's appointment has slowed things down. Air Canada and some of the other unions have praised Judge Winkler for his efforts in helping the parties reach agreements. Link to comment Share on other sites More sharing options...
Guest low torque Posted May 28, 2003 Share Posted May 28, 2003 Good show ACPA! Please just tell me one more time, who is slowing things down? Good luck with your lame appeal. Link to comment Share on other sites More sharing options...
Guest WA777 Posted May 28, 2003 Share Posted May 28, 2003 I hope ACPA is ready for the consequences of doing just that.......... Link to comment Share on other sites More sharing options...
Guest WA777 Posted May 28, 2003 Share Posted May 28, 2003 I hope ACPA is ready for the consequences of doing just that.......... Link to comment Share on other sites More sharing options...
Guest CleardecksforACTION! Posted May 28, 2003 Share Posted May 28, 2003 They've put in a request to have their appeal and proposal heard by Mme. Justice Pineau. Cheerio! Link to comment Share on other sites More sharing options...
dragon Posted May 28, 2003 Share Posted May 28, 2003 Is it not a little early to be second guessing ACPAs strategy just yet?.. ACPA pilots have been near here many times before, my five bucks is with my negots committee and this thing is a long way from being over.. imo Link to comment Share on other sites More sharing options...
Guest WA777 Posted May 28, 2003 Share Posted May 28, 2003 From a previous divorce I learned the hard way that it is very very unwise to challenge a judge....also over my flying career I learned to apply the same rule to customs and immigration agents.... Link to comment Share on other sites More sharing options...
Guest JazzPilot Posted May 28, 2003 Share Posted May 28, 2003 Dragon: I would agree with you, but appealing Judge Winklers appointment indicates desperation. I am no means counting my chickens. In addition I will probably be jumped on by my peers, but I dont' want to see this go too one sided either way. Good luck to all those involved. Jazz Link to comment Share on other sites More sharing options...
dragon Posted May 28, 2003 Share Posted May 28, 2003 with all due respect T7, this is not wack the small guy and show em whos' boss in this court room. the stakes are too high in this game, Winkler knows it, so does Farley, Rovinescu has LOTS of bad mediation/arbitration memories and ACPA pilots, love em or hate em, hold some clout here, and a pretty good last card, imo. Link to comment Share on other sites More sharing options...
Don Hudson Posted May 28, 2003 Share Posted May 28, 2003 Dragon; Quite true. There is little relationship between personal battles in court and the current series of responses by one organization. In larger circles, there are aspects of expectancy which reflect the more-or-less normal course of events. Appeals fall into that category and I doubt very much whether there is a "personal" aspect to this which Mr Justice Winkler would take umbrage with. In short, its business. Link to comment Share on other sites More sharing options...
dragon Posted May 28, 2003 Share Posted May 28, 2003 JP, How ya doin? I disagree. One emotion I do NOT sense in any way, is desperation, though I can understand how one might see it that way too.. As for one sided.. you have been around here long enough to know that I am one ACPA pilot with a lot of respect for the Jazz pilots. I have supported a merge of our groups since I arrived here in '95. I hope that still happens and perhaps now that Jazz may have a little more to play with, maybe, just maybe, we can move this thing forward once and for all. Good luck to you guys and families as well. dragon Link to comment Share on other sites More sharing options...
conehead Posted May 28, 2003 Share Posted May 28, 2003 Oh, and what would that be Dragon? You going to vote it down? If a tentative agreement isn't reached tonight, you're going to see Judge Farley impose one on you. None of us have any control in this entire process, which is hard to accept for some. I suggest we all bite the bullet and carry on with our lives, and try and remember the things that are REALLY important. Link to comment Share on other sites More sharing options...
dragon Posted May 28, 2003 Share Posted May 28, 2003 Speak to me with a little respect and spare me the condescending crap, and I'll be sure and do the same with you. Otherwise, GFY. In the mean time, you have your opinion and I have mine. The truth we’ll know soon enough and then you can come back and tell me ‘I told you so’ if it will make you happy. Ps. The only really important things in my life are my wife and my son. Brother too, sister does'nt make the cut. Air Canada will never make it into the top 3. see ya Link to comment Share on other sites More sharing options...
Guest Rob Assaf Posted May 28, 2003 Share Posted May 28, 2003 "ACPA holds some clout here" Are we talking about the same thing here? The topic I'M reading about is a broke company trying to forge agreements with its employees to keep the place open, the alternative is massive permanent unemployment (at least with AC mainline). I'm not sure what clout you are refering to? Are you planning a strike vote? You know of some millions the company hid from the creditors? I hope that the mainline lives on. It will probably not resemble what is does today, but hopefully it will re-emerge as a profitable but probably smaller self. Maybe jazz will grow, maybe it will just shift the type of equipment it flies and to where. If we are profitable, our chance to survive is good too. I wish the ACPA group the best and hope that all the mainline unions can come to agreements that will see the mainline survive and at least some of the jobs with it. It is too much to expect that all the jobs will survive. It is obviously well beyond that. I hope that all concerned realize that simple fact. My true best wishes for a contiued mainline operation, Rob Assaf Link to comment Share on other sites More sharing options...
DEFCON Posted May 28, 2003 Share Posted May 28, 2003 Pineau is not a "Justice"! Link to comment Share on other sites More sharing options...
Guest Nigol Posted May 28, 2003 Share Posted May 28, 2003 I must admit, even though I am on the other side and at risk of being roasted by my regional peers, that by appealing Justice Winklers appointment is a very good strategy. If you don't like the game...change the rules. ACPA must have some very intelligent legal council, you've gotta give them that. This worked with the Pitcher(sp??) Award and quite possibly it will work here. ACPA has turned the tables on Air Canada. I think in effect, ACPA is saying to AC management, 'if you're serious about liquidating the company, do it now, its gonna be blood on your hands not ours.' However, it's not going to win any points with the Judge ,the company , or the creditors. But it's not a popularity contest any more, is it? Just my opinion. Link to comment Share on other sites More sharing options...
exGXer Posted May 28, 2003 Share Posted May 28, 2003 I imagine Chris Pulley etal is getting really upset with ACPA over such a move. Link to comment Share on other sites More sharing options...
Beth Posted May 28, 2003 Share Posted May 28, 2003 In response to: 'a broke company trying to forge agreements with its employees to keep the place open' That is not quite the scenario, as was demonstrated by AC's original list of demands. These were supposed to be based on 'need' not'greed' and yet, were quite demonstrably the latter. Inside info has it that even the judge raised more than an eyebrow. AC was obviously trying to make future gains by taking advantage of a bad situation, otherwise the negots would not still be continuing. Rumour has it the deadline to present has been moved up two days. Link to comment Share on other sites More sharing options...
dragon Posted May 28, 2003 Share Posted May 28, 2003 Rob, Just saw your post, am out the door and out of time, back on the 3rd. Sorry. Good luck to everyone. dragon Link to comment Share on other sites More sharing options...
Mitch Cronin Posted May 28, 2003 Share Posted May 28, 2003 "AC was obviously trying to make future gains by taking advantage of a bad situation" No kidding! Evidenced clearly by the length of contract they're after! Link to comment Share on other sites More sharing options...
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