Air Canada Unions Refuse Talks On Pension Changes

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Air Canada's unions rejected a request for an "immediate meeting" over
pension changes from the airline's new equity investor on Monday, saying =
the
matter was not open to discussion.

"We are not meeting with these folks. The game is over," said Dave =
Ritchie,
vice-president of Air Canada's machinists union.

A spokesman for the Air Canada Pilots Association said employees have
already made enough sacrifices to help the airline emerge in one piece =
from
its restructuring under bankruptcy protection.

Trinity Time Investments, a company controlled by Hong Kong businessman
Victor Li, asked earlier in the day to meet the unions to discuss its =
plan
to switch Air Canada's pension plan to a defined contribution plan from =
a
defined benefit plan.

Such a change would transfer the investment risk from the company to the
employees, and for that reason the proposal has been adamantly rejected =
by
the unions.

"If the man wants to steal from you, why would you meet with him?" said =
Gary
Fane, head of the transport section of the Canadian Auto Workers union,
which represents Air Canada reservation and ticket agents.

Trinity has warned the change is essential to its investment in Air =
Canada.
But the unions have called on Air Canada to find another investor if =
Trinity
does not drop its plan.

Air Canada chief executive Robert Milton stepped into the fray last week =
by
proposing that each employee choose one of the two pension systems.

His proposal led the unions to complain to the Canada Labour Relations =
Board
that Milton was trying to "stampede" employees by circumventing their
unions.

"They can't be talking directly to our members in the way which they are
now, it's against the law. The union is the sole bargaining agent," =
Ritchie
said.

Air Canada and its unions settled the most pressing pension issue last =
week
when they agreed on a 10-year schedule to fund a CAD$1.4 billion =
(USD$1.05
million) deficit in the plans.

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