Air Canada talks with pilots set for Wednesday

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Air Canada talks with pilots set for Wednesday

MONTREAL (Reuters) =97 Air Canada is set to meet Wednesday with its 3,400=20
mainline pilots to discuss wage and other labor contract concessions the=20
airline is seeking to cut costs, the pilots' union said Monday. Air Canada,=
=20
the dominant carrier at home and the 11th-largest in the world, has asked=20
key unions to meet a March 15 deadline for coming up with proposals on how=
=20
to chop annual labor costs by C$650 million ($445 million), or 23 %. Air=20
Canada won't discuss its demands, but acknowledges it plans to meet with=20
unions representing pilots, cabin crew, maintenance technicians and others=
=20
in the coming weeks. "The March 15 timeline was to communicate the urgency=
=20
of getting down to discussions," Air Canada spokeswoman Isabelle Arthur=20
said. Roughly 85 % of Air Canada's work force of 40,000 is represented by=20
six big unions."Our negotiations committee is going to meet with the=20
company starting on Wednesday," Don Johnson, president of the Air Canada=20
Pilots Association, told Reuters.
A pressing issue for the pilots is Air Canada's request that they accept a=
=20
15 % wage rollback and forego bonuses due in the next few weeks.

Johnson said the pilots will know how to respond once they have information=
=20
from the Toronto office of Kroll Inc., the risk consulting firm they hired=
=20
to examine Air Canada's finances. Kroll began its work Monday and pilots=20
expect to receive the first report on Friday. The due diligence will help=20
pilots determine whether "the issues are as pressing as the company says=20
they are," Johnson said. "Once we see what the magnitude of the problem is,=
=20
I'm sure we'll respond in an appropriate manner," he said. At the Air=20
Canada component of the Canadian Union of Public Employees, which=20
represents the airline's 8,000 flight attendants, the membership has=20
already given up much in its latest collective agreement, president Pam=20
Sachs said. Sachs wrote Air Canada executives, saying that like the pilots=
=20
and members of International Union of Machinists and Aerospace Workers, her=
=20
union is also considering whether to scrutinize the books to see how the=20
carrier is faring in a tough travel market that has passengers, including=20
those traveling on business, demanding the lowest-priced tickets.

"I think it's poor when the employees are the first line of defense. I want=
=20
to know a little more about their corporate strategy and what they intend=20
to do," she said. Air Canada has not yet asked the flight attendants to=20
consider wage cuts, Sachs said.
"They've hinted at it, but they haven't been specific with us as a group,"=
=20
she said. Like the Canadian Auto Workers, which represents ground services=
=20
workers, the flight attendants union opposes concessions that go beyond a=20
labor contract ratified in late December. In it, they agreed to work rules=
=20
concessions that their union said allowed Air Canada to lower cabin crew=20
costs at its Tango low-fare service and Zip no-frills unit. Air Canada=20
shares rose 1 Canadian cent at C$2.93 Monday. The share price has eroded=20
since late November, when a rally took it above C$6. The stock fell as low=
=20
as C$1.80 in the week following the Sept. 11 attacks against the United=
 States.


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