Air Canada flight attendants union going to labour board to prevent layoffs

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Air Canada flight attendants union going to labour board to prevent layoffs
DAVID PADDON   Canadian Press  Friday, March 28, 2003

TORONTO (CP) - The union representing Air Canada flight attendants is going
to the federal labour relations board in an effort to stop 600 involuntary
layoffs of its members, part of a larger downsizing by the troubled
airline.  "We're sending them our case outlining all our reasons why we
think Air Canada is in violation of the (labour) code," Pamela Sachs, of
the Canadian Union of Public Employees, said in an interview Friday.  In
late 2001, the Canadian Labour Relations Board squelched attempts by the
airline following the Sept. 11 terrorist attacks to unilaterally lay off
unionized employees with strong no-layoff clauses in their
contracts.  However, it's possible the quasi-judicial agency won't hear the
case this time, said Sachs, president of CUPE's Air Canada component, which
represents 8,500 flight attendants at the airline.  CUPE will file its case
early next week. The airline rejected an attempt by CUPE earlier this week
to have an independent arbitrator decide whether Air Canada can override
parts of its contract with the union because of the war.

In the meantime, Air Canada sent notices by courier to 400 flight
attendants on Friday, with layoffs effective next Thursday. A further 200
notices are to be sent in May as the airline scales back its operations,
Sachs said.  The Canadian Auto Workers union, representing 9,600 Air Canada
employees, has said the airline also wants to cut 600 of its members, who
staff airport ticket counters and reservation call centres.  There were
reports some of Air Canada call centres may be closed - there are five in
Canada and one in Florida - but CAW negotiator Gary Fane denied this week
that's in the works. Air Canada won't disclose details of its plans.  Air
Canada said last week it needed to cut 3,600 jobs - about 20 per cent of
its non-union positions and 10 per cent of its unionized jobs - because of
the U.S.-led war in Iraq.  That would be on top of any job losses or
concessions required to cut at least $650 million in annual labour costs to
compete with smaller rivals.

Air Canada Jazz, a regional subsidiary that flies to many smaller
communities not served by the main airline, told employees in Quebec City
on Thursday that most maintenance jobs at Jean Lesage Airport would be cut
by June.  The number of technicians at that location will be reduced to
eight from 60. However, 30 jobs will be transferred to Montreal, where
there are currently 24 employees at another maintenance centre.  The
Chretien government has been under political pressure, including from some
Liberal members of Parliament, to do something to help Canada's largest
airline - a former Crown corporation that was privatized in the late
1980s.  However, Calgary-based WestJet Airlines - the country's
second-largest airline - and others have been quick to protest a government
bailout of Air Canada.  Air Canada has lost more than $1.7 billion since
its last profitable year in 1999. Some analysts expect the carrier to seek
bankruptcy protection under the federal Companies Creditors Arrangement Act
as it tries to trim its operations and restructure more than $12 billion in
long-term debts and leases.

Transport Minister David Collenette, who said a week ago that the federal
government was committed to the survival of Air Canada in one form or
another, said Friday that Ottawa had no new initiative to announce.  "I'm
very concerned about the entire state of the aviation industry worldwide
and of course there's a big dimension to it in this country," Collenette
said outside the Commons.  "As I've said before, Air Canada is certainly
trying to deal with it as best it can. Right now, there's nothing new to
add on the airline file. I'm telling you there's nothing new on Air Canada
and the aviation file."  Air Canada stock (TSX:AC) closed at $2.50, down 14
cents, with nearly 1.4 million shares traded Friday. It's 52-week low of
$2.40 was set March 12, about a week before the invasion of Iraq began.


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