Air Canada attendants ratify contract 10% raise over 44 months

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Air Canada attendants ratify contract  10% raise over 44 months
Canadian Press Monday, December 30, 2002

OTTAWA -- After a year of negotiations involving a mediator, Air Canada
fight attendants have approved a 44-month contract that includes wage
increases totalling 10 per cent - and finally puts them in the same fold as
former employees of Canadian Airlines.  The 8,500 flight attendants,
members of the Canadian Union of Public Employees, ratified the new
collective agreement in voting that ended Monday. The attendants currently
make about $37,000 a year on average, depending on flight time.  "Air
Canada flight attendants have won major gains in wages, job security,
benefits and pensions," CUPE national president Judy Darcy said in a
release.  "Equally important, the contract goes some distance in
recognizing their vital role as safety professionals and the public face of
the airline."

Achieved with the help of mediator George Adams, it's the first contract to
cover all flight attendants at Canada's biggest carrier (TSX:AC) since it
merged with Canadian Airlines International in 2000.  About 3,500 of the
attendants worked for CAI and have been receiving annual raises that were
negotiated before the merger. That fact had created tensions with long-time
Air Canada employees.  In fact, a huge union local election was declared
null and void in early December over a poisoned environment that involved
voting irregularities in November 2001. The election will be restaged in
January.  "Moving everyone to one collective agreement was something that
we saw as being key in terms of moving forward the whole question of
building greater cohesion between the two groups," spokesman Robert Fox
said in an interview.

Seventy-seven per cent of eligible employees voted on the proposed
contract. Sixty-eight per cent of those who voted were in favour while 32
per cent were opposed, said Fox.  The new contract - effective until August
2004 - could be reopened if other unions negotiate more raises, the union
said, and it also strengthens job security.  "This agreement guarantees
there will be no involuntary layoffs, base closures or relocations," Darcy
said.  The agreement also sets out contract provisions for ZIP, Air
Canada's discount carrier, and improves pensions for former Canadian
Airlines flight attendants.  In addition, it includes a $25.8-million bonus
for flight attendants who worked for Air Canada at the time of the merger.
The union said the mediator awarded the bonus because flight attendants
were the only employee group with Air Canada that had not received a bonus
at that time.


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