Another example of how unions can screw your company.

Only Diff. is  UAL may go CHAPTER 7 .

Thank your local union SLUGs

Air Canada union says management clipped its own wings

Air Canada Inc AC
Shares issued 79,063,722 Mar 31 close $2.10
Tue 1 Apr 2003 News Release
Mr. Simon Blackstone reports
STATEMENT BY CUPE ON AIR CANADA FILING
On March 31, 2003, at 5 p.m. Air Canada delivered an ultimatum to its
employees. Employees had 13 hours to surrender their contractual rights or
the company would proceed to file for bankruptcy protection.
Robert Milton demanded that employees accept:
an immediate across-the-board wage cut of 22 per cent;
a permanent freeze on wages; and
an end to layoff protection.
The union negotiated through the night to find a resolution. But it was not
possible to accept such a deal. Its members -- among the lowest paid of Air
Canada's employees -- could not afford to support their families if their
wages were cut by almost a quarter.
The union is not convinced these concessions would lead to the types of
changes that are needed to make Air Canada strong. And it could get no
assurance from the company that were it to accept these terms, Air Canada
would not file for bankruptcy protection in any event.
CUPE (Canadian Union of Public Employees) is committed to making Air Canada
a strong, viable enterprise that serves the public well, treats its
employees fairly, and competes on a sustainable basis with major airlines
around the world and within Canada.
As a demonstration of its good faith, the union agreed this past year to
allow Air Canada to operate ZIP at wages comparable with those of WestJet,
a move no other employee group has made. This represents a labour cost
saving of $7.8-million each year -- a substantial contribution to the goal
of ensuring Air Canada remains competitive.
Although the union disagrees with the announced layoff of 600 flight
attendants, it does result in a further cost savings to the company of
$24-million for a total of $32-million from among the lowest paid of the
Air Canada employee groups.
The union believes there are other changes that can be made to the way Air
Canada operates that would improve efficiency and service levels and
contribute to the financial health of the company. But it sees no
willingness on the part of Mr. Milton and Air Canada's management to engage
in serious discussions to identify these solutions.
Regrettably, the federal government has made itself complicit in this
avoidable bankruptcy filing. Transport Canada bears great responsibility
for the financial position of Air Canada, having created an unregulated
monopoly at the same time it has promoted an industrywide regime of
deregulation. Worse still, it has pushed Air Canada down the road to
bankruptcy protection by making its support conditional, offering a
$300-million incentive. This "reign of error" has been disastrous for Air
Canada and for Canadians.
Canadians look to Canada's national carrier to meet their needs to connect
from coast to coast and around the globe. They want a reliable, affordable,
full-service operation, serving not only metropolitan centres, but
communities large and small. There are structural costs to providing such a
vital service and the federal government has to get serious about its
obligation to support it.
Air Canada pretends that its employees are at the root of its problems. The
union believes that Air Canada management -- and federal inaction -- are
the root of Air Canada's problems. Nonetheless, it is prepared to meet with
Air Canada and with federal officials at any time to discuss real solutions
to the issues facing Air Canada.
The union remains convinced that working together in good faith can
identify a strategy that will make Air Canada a stronger and more viable
airline while defending the legal and contractual rights of its members.
(c) Copyright 2003 Canjex Publishing Ltd. http://www.stockwatch.com

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