Air Canada pilots union says cutback deal, survival at risk

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Air Canada pilots union says cutback deal, survival at risk

OTTAWA (Reuters) =97 Air Canada's pilots union said Monday that a seniority=
=20
arbitration ruling is causing so such discontent among its members that=20
they could reject a cost-cutting agreement deemed essential to the survival=
=20
of the insolvent airline. The Air Canada Pilots Association told its=20
members to delay their vote on the deal until Thursday, after the union=20
meets with the chairman of the Canadian Industrial Relations Board to=20
appeal the seniority decision. The issue first arose three years arose when=
=20
Air Canada bought its distressed rival, Canadian Airlines, and tried to=20
merge the two pilots groups. A first ruling on the merged seniority lists=20
was opposed by the former Canadian pilots, who felt they lost too much. A=20
second ruling came down last week, this time causing an uproar among the=20
original Air Canada pilots, who account for about two-thirds of the 3,200=20
pilots.
The seniority issue flared up just as the pilots are asked to vote on job=20
cuts and wage rollbacks to help Air Canada emerged from bankruptcy=20
protection without running out of cash. "We don't want our members to vote=
=20
in anger," said Capt. Dave Coles, head of a committee representing pilots=20
who flew with Air Canada before the merger with Canadian. "This vote is too=
=20
close to count," he told reporters in Ottawa. The seniority lists are=20
central to the pilots' jobs, as they determine who will fly which planes=20
and routes, and therefore their pay scales.

Capt. Rob McInnis, head of the committee acting for the former Canadian=20
pilots, said the latest ruling only tips the balance to a fair position. He=
=20
said he was confident all the pilots would be responsible and vote for the=
=20
tentative agreement, regardless of the dispute over seniority. "It's our=20
view that it's time to put this behind us, that Air Canada has much more=20
serious problems to worry about than scrapping pilots," he said. "There's=20
no point in having a good seniority number and no airline to work for."
Air Canada gave its unions until June 30 to ratify tentative agreements on=
=20
cost and job cuts as it is running against the clock to lower labor costs=20
by C$1.1 billion. The airline has cut all lease payments to its aircraft=20
lessors since obtaining bankruptcy protection on April 1. Chief executive=20
Robert Milton said revenues are expected to be C$1 billion lower this year=
=20
as ticket sales suffers from increased competition amid a global downturn=20
in air travel.


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