Air Canada reaches cost-saving deal with flight attendants

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Air Canada reaches cost-saving deal with flight attendants
Last Updated Wed, 28 May 2003 12:42:52

TORONTO - Air Canada said Wednesday it has now hammered out cost-cutting=20
deals with all of its unions except its pilots.  Following marathon=20
negotiations, the company said late Wednesday morning it had reached a=20
tentative deal with its 6,700 flight attendants.  Details of the deal with=
=20
the flight attendants were not immediately available, but the company said=
=20
in a press release that pension benefits will not be affected.  Wednesday's=
=20
agreement leaves the airline's pilots as the only union yet to agree to a=20
deal.  "The pilots' union is presently considering the company's last=20
proposal which is consistent with the cost savings target set by the=20
company and follows the approach taken with other labour groups," the=20
company said.  The airline =96 which is trying to cut $770 million from its=
=20
annual labour costs after going into bankruptcy protection on April 1 =96=20
struck a deal on Tuesday with its 11,000-member machinists union.

The deal will see 1,400 job cuts and is expected to save the company about=
=20
$180 million a year. Workers will take a 1.5 per cent pay cut for three=20
years. Employee pension benefits are preserved but workers will give up=20
some vacation time, shift premiums and two holidays.  Justice Warrren=20
Winkler, who is acting as a court-appointed facilitator in the talks, had=20
set a deadline of 5 p.m. Tuesday for the airline to reach deals with all of=
=20
its unions. That deadline was extended to 9 p.m. as the parties continued=20
talking into the evening.  Also on Tuesday, Air Canada's Jazz division said=
=20
it had negotiated cost-cutting deals with two remaining unions representing=
=20
approximately 900 customer service agents, 630 flight attendants, 650=20
maintenance staff and 28 crew schedulers.  Coupled with deals reached over=
=20
the weekend with its pilots and flight dispatchers, Jazz said it will save=
=20
about $110 million a year.  On Monday, the airline reached a deal with the=
=20
Canadian Auto Workers, which represents about 6,000 customer sales and=20
service agents and crew schedulers at the mainline carrier.  The deal with=
=20
the CAW will see more than 800 people lose their jobs, while the airline=20
will cuts its labour costs by about $150 million a year.

Written by CBC News Online staff


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