Airline warns workers on perks

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Airline warns workers on perks
Grant Robertson
Calgary Herald
Wednesday, October 16, 2002

Air Canada is threatening to crack down on its employee perks program after
a number of staff have been caught abusing their privileges, including
selling flight passes and misbehaving aboard planes. The airline has
investigated 600 violations in the past year, ranging from concerns about
excessive drinking by employees travelling on company passes to staff
demanding upgrades, tampering with bookings and ducking service charges.
Staff were told by Air Canada this month that the perks -- a key luxury of
working for an airline -- are "special benefits" employees could lose. "We
hope that by informing you about what is or isn't acceptable, you will do
your part to ensure that we don't lose these travel benefits," said Louise
Levesque, Air Canada's employee travel co-ordinator. The comments were
posted on the company's online employee newsletter and come at a time when
feuding between the company and its staff over benefits has been
escalating. "We've been fighting a number of battles for a while now on
flights and benefits," said Don Johnson, president of the Air Canada Pilots
Association, which represents 3,300 employees at the carrier. "Our position
has always been if you've got somebody abusing the system, deal with them.
But don't make all of the employees bear the brunt of that."

Air Canada, which has about 40,000 employees, said its travel concessions
are among the best of any airline, offering staff, their partners and
children heavy discounts on unfilled seats. But the carrier says some
employees have been selling or bartering tickets, exceeding their pass
allotment and tampering with reservations to upgrade seats.  A few
employees have also been found intentionally misprinting tickets to avoid
service charges that passengers are required to pay. As well, the company
flagged several examples of misconduct, including bad behaviour at gates,
dress-code violations and excessive alcohol consumption. The violations
have been limited to a "small number" of employees, the online newsletter
said.  Industry watchers say a move by Air Canada to tighten its employee
benefits program is a sign of how cost-conscious the airline has become
after recording its worst year of financial losses in 2001.

In the past year, Air Canada has moved to restrict the use of passes
employees can give to friends or extended family members. Under new rules,
staff members must accompany their guests, a change that has seen a
decrease in the number of times such perks are being used. Barry Prentice,
director of the University of Manitoba's Transportation Institute, said Air
Canada faces a tough decision in cracking down on employees. "In many
firms, there's kind of these unwritten rules as to how much you let your
employees get away with -- because it's a function of morale," said
Prentice. "So they have to decide what the price of that is going to be.
But Air Canada is really starting to face some hard realities in terms of
cost." The cost of offering cheap flights to employees -- a common policy
of airlines around the world -- is small, because the seats would otherwise
fly empty. If an employee has booked a ticket on the perks program, he or
she will be bumped if a paying customer comes along, said Air Canada
spokeswoman Angela Mah. "If there are no seats, then you don't go," she said.

The Air Canada Pilots Association doesn't see recent changes to the perks
program as an effort to streamline the carrier's operations. Instead,
Johnson accuses the airline of using the benefits as a bargaining
chip.  The pilots are fighting the carrier over reduced flight frequencies
and changes to seniority levels, which they argue make it harder to use
employee passes. Employees violating the carrier's rules face a wide range
of disciplinary measures, starting with warning letters for minor conduct
infractions, such as bad behaviour or ignoring dress codes. Staff found
selling or bartering their passes -- a process made difficult now that
employees must travel with their guests -- face termination, the newsletter
said.



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