Air Canada pilots accept 10% pay cut ...Facilitator, unions to discuss concessions Steve Erwin The Canadian Press Saturday, May 10, 2003 TORONTO -- Air Canada's pilots have accepted a 10-per-cent wage cut as the insolvent airline and its five unions prepare to meet Monday with a facilitator to negotiate wage concessions and other disputes that have dragged on since the carrier was granted bankruptcy protection last month. The airline announced late yesterday that the pilots -- the biggest labour group involved in the restructuring -- agreed to the wage reductions for June and July, which will be matched by a similar wage cut for management. That's a major breakthrough for the airline, which will now hope other unions agree to similar measures. The agreement with the Air Canada Pilots Association is "pending the completion of the labour cost restructuring," Air Canada said in a statement. "I commend (the union) and our pilots for their leadership in taking this important step as we work our way to a sustainably viable cost structure," said Air Canada president Robert Milton. "Upon ratification and concurrent with this 10-per-cent wage reduction, a similar wage reduction will also be implemented for management and other non-unionized employees." Earlier, Mr. Justice James Farley of the Ontario Superior Court of Justice, ordered the unions to meet with Air Canada and its Jazz and Zip subsidiaries to find a solution to cost-cutting. Calling the move "an extraordinary step," Judge Farley suggested the dispute is delaying the airline's opportunity for restructuring. The company and its five unions will begin meeting Monday with Superior Court Justice Warren Winkler as facilitator. Air Canada has already announced 3,600 layoffs -- over the objections of some of its unions -- but has indicated more jobs will have to go as part of the restructuring. The airline and its subsidiaries employ nearly 40,000 people. Recent reports suggest Air Canada is looking to cut $770 million from its $3-billion annual labour bill in addition to $400 million in one-time pension and benefit costs. Unions have been resisting making major concessions, particularly on pensions. Judge Winkler, who will try to get both sides to reach agreement similar to an out-of-court settlement in a lawsuit, will be working to a practical deadline of May 21, Judge Farley said. Judge Winkler has presided over high-profile corporate cases, including the Bre-X Minerals scandal in the late 1990s. He has also been in the public eye in several high-profile court settlements. In 2001, he approved a Red Cross-led settlement for people infected by hepatitis C through tainted blood before 1986 and after July 1, 1990, and in the same year approved a class-action suit for victims of the E. coli outbreak in Walkerton, Ont. The head of the Canadian Auto Workers union, which represents Air Canada reservation and ticket-counter clerks, applauded the move, saying it could help expedite the restructuring process. *************************************************** 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.cso.gov.tt TnT Webdirectory: http://search.co.tt *********************************************************