CAW agrees to 1,060 job cuts at Air Canada

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CAW agrees to 1,060 job cuts at Air Canada
Last Updated Mon, 31 Mar 2003 17:58:00

TORONTO - The CAW union has agreed to 1,060 job cuts involving its members=
=20
at struggling Air Canada.  CAW president Buzz Hargrove told an Ottawa news=
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conference the union had also agreed to defer a 2.5 per cent wage increase=
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for the rest of its members =96 a move that would save more than $6 million=
 a=20
year.  The CAW represents 9,500 passenger agents at the airline.  The job=20
reductions would be part of the 3,600 job cuts Air Canada announced earlier=
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this month as part of a major cost-cutting initiative.  The machinists'=20
union has been targeted for 1,300 cuts, while Air Canada has already=20
started mailing out layoff notices to 600 flight attendants. The Canadian=20
Union of Public Employees, which represents flight attendants, said it is=20
fighting the layoffs. CUPE says forced layoffs are prohibited under the=20
no-layoff clause in its contract.

Air Canada has been trying to keep its head above water as it struggles=20
with reduced travel in the aftermath of Sept. 11, the war in Iraq, tougher=
=20
domestic competition, and now severe acute respiratory syndrome=20
(SARS).  The federal government is reportedly working on some kind of aid=20
package for the airline that could include loan guarantees of more than=20
$300 million.  Also on Monday, a coaltion of Air Canada's five unions asked=
=20
the federal government to cut fees and taxes imposed in the airline=20
industry.  The move echoed a similar call made earlier in the day by a=20
coalition of airlines, travel agents, airports, and the hotel industry.


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