Air Canada turns down union request for arbitration on force majeure layoffs DAVID PADDON Canadian Press Tuesday, March 25, 2003 TORONTO (CP) - Air Canada has turned down a union request for an independent arbitrator to rule on whether the war in Iraq is sufficient cause to override the airline's contract with flight attendants. "We declined the request on the basis that we need to proceed quickly with our efforts to reduce costs," spokeswoman Laura Cooke said Tuesday. The airline said last week it needs to cut 3,600 jobs because of the impact of the war in Iraq on its already dismal business. That's on top of $650 million a year in labour cost savings it was seeking to help it compete with discount carriers. The Canadian Union of Public Employees, representing 8,500 flight attendants at Air Canada and subsidiary Zip Air, said Monday that an arbitrator should rule on whether the war constitutes force majeure. This legal term - meant to provide relief in unusual, major crises - was cited by Air Canada chief executive Robert Milton when he announced the plan to cut about one-tenth of the company's 35,000 union and non-union jobs Pamela Sachs, president of CUPE's Air Canada component, said from Ottawa that she was surprised the airline had rejected arbitration "because it seemed to be the cleanest and simplest way" to resolve the dispute. "I think that they know that they're wrong and don't want to hear that from an arbitrator." The union is considering its legal options, which could include an appeal to the Canadian Industrial Relations Board, and would still like to confer with the company on ways to reduce the layoffs. Air Canada attempted to claim the Sept. 11 terrorist attacks as force majeure in late 2001, but the federal labour board turned this down and ordered the airline and its unions to negotiate a solution. As a result, hundreds of unionized employees left through early retirement and other voluntary options, while others accepted job-sharing and other work-reduction plans, often with federal financial assistance. Now, industry observers say, there's an increased likelihood that a weakened Air Canada - it lost $428 million last year and has $12 billion in long-term debt and leases - could seek bankruptcy protection. Transport Minister David Collenette has signalled an increased willingness to aid Air Canada, saying Ottawa is committed to the survival of the country's largest airline. Asked Monday in the Commons whether the government might buy back the former Crown corporation, Collenette said he is "prepared to discuss with them any options that might make the situation better." WestJet Airlines, a smaller but profitable discount carrier, has said repeatedly that the government should not bail out Air Canada. Cooke said Tuesday that Air Canada has not sought direct assistance from the federal government - although it supports an industrywide appeal for a reduction in fees, rents and taxes that raise the cost of flying and discourage air travel. Air Canada is also continuing to talk with its unions about cost-cutting measures, she said. Gary Fane, director of the Canadian Auto Workers transportation division, said the union has held two days of talks with Air Canada and hopes for a response Wednesday. Last week's proposal would lay off 600 of the 9,600 CAW members at the airline, in addition to previous cost-saving moves. Of the four main unions at Air Canada, the flight attendants have the most recent collective agreement, signed in December to run until October 2005, after months of difficult talks and divisions within the union. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************