Air Canada talks with most unions on hold as company, unions regroup

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Air Canada talks with most unions on hold as company, unions regroup
DAVID PADDON   Canadian Press  Friday, May 16, 2003

TORONTO (CP) - Cost-cutting talks between Air Canada and its main unions,
which have been going on most of the week with the help of an Ontario
judge, are on hold for the long weekend, union leaders said
Friday.  "They're going to start (again) next week," said Gary Fane, who
heads the Canadian Auto Workers' transportation division, which has members
at both the main Air Canada airline and its Jazz regional subsidiary.  The
talks, ordered last week by Justice James Farley, began Monday with Justice
Warren Winkler - a former labour lawyer - acting as facilitator.  Farley,
the judge overseeing Air Canada's court-assisted restructuring while under
protection from creditors, ordered the talks to help speed up labour
negotiations - a crucial part of devising a viable business plan for
keeping the money-losing airline alive in the long term.  The
Montreal-based airline has been seeking $770 million in wage cuts and $400
million in benefit cuts from its workers as part of its plan to
restructure, slash operating costs and return to profitability.

Air Canada spokeswoman Laura Cooke said Friday the company (TSX:AC)
wouldn't comment at all on the status of the negotiations, citing a media
blackout imposed by Winkler earlier this week.  Fane said talks will resume
next Wednesday, but other union leaders were less certain about the
timing.  Don Johnson, president of the union representing 3,400 pilots at
the main airline, including Tango and the company's Zip Air subsidiary,
said the Air Canada Pilots Association negotiators had held talks
Friday.  Speaking from his Montreal-area home, Johnson said he had been
told that talks with other unions were put on hold but, "as far as I know,
we're still meeting and talks are going on with us."  Johnson, who isn't
directly involved with the talks, said it's still unknown whether Air
Canada will ground 40 planes as it announced Wednesday.  "My understanding
is that number is not firm yet. It could be that high. But it could be less
if things in any way pick up for the summertime," Johnson said.  "To my
knowledge, they have not announced any layoffs of pilots as a result yet."

Pam Sachs, president of the union representing 8,300 Air Canada and Zip
flight attendants, also said it wasn't clear how many, or which, planes
were being grounded.  But Sachs said her members - represented by the
Canadian Union of Public Employees - accept that Air Canada needs to cut
surplus employees and that there are about 1,000 flight attendants "who are
lining up at the door to leave."  "We had negotiated a voluntary separation
package in our last collective agreement that allowed 300 people to go. And
that was put on hold, it was stopped, because of the CCAA (bankruptcy
protection) process," Sachs said.  In the meantime, CUPE's Air Canada
component, an autonomous unit of Canada's largest union, has had to cut two
lawyers and a media spokesman - about half its own staff - because of the
high costs of the restructuring process.  CUPE flight attendants are also
being asked to increase their union dues by half a percentage point to help
cover the cost of hiring outside lawyers and financial advisers, Sachs
said.  Fane would say little about the talks but noted the CAW had made an
offer before the airline obtained court protection under the Companies
Creditors' Arrangement Act on April 1.  "We're still willing to help them.
But they have to figure out what their priorities are," Fane said.


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