Labour Minister steps in to prevent Air Canada work stoppage

Federal Labour Minister Lisa Raitt has stepped in to prevent a labour disruption at Air Canada next week that would have thrown the travel plans of thousands of families into chaos over March Break.

Raitt sent the dispute between the airline and two of its unions — the 3,000 pilots and 8,600 ground crew — to the Canadian Industrial Relations Board (CIRB) to see how a work stoppage would affect the health and safety of Canadians.

“The Canadian Labour Code is very clear that while the CIRB is considering the matter of what level of service an air carrier has to provide in the case of health and safety matters that they cannot affect a work stoppage,” the minister said.

Raitt made the same decision in October when it looked like Air Canada’s 7,000 flight attendants would go on strike, but the CIRB never made a decision on that matter.

“It is still a valid question to me, especially when it comes to passengers and cargo and that’s exactly why we’re going to be sending it over to the CIRB,” Raitt said Thursday.

Earlier Thursday, Air Canada had threatened to lock out its pilots, while its baggage handlers, machinists and cargo agents had set a strike deadline for 12:01 a.m. Monday.

Pearson International Airport was anticipating more than 200,000 travellers to pass through the facility on Thursday and Friday alone. But the double threat could have been a nightmare for others travelling next week over March Break.

On Thursday, the airline served 72 hours’ notice for a lockout of its pilots, who were given a deadline of noon to accept its latest offer. The Air Canada Pilots Association (ACPA) urged its members to reject it.

The two sides have been in talks for a year and a half.

President of ACPA, Captain Paul Strachan, had harsh words for Air Canada.

“It’s ridiculous that the corporation continues to focus on squeezing a group of professionals whose compensation represents only about four percent of revenue,” he said.

He also questioned the validity of government intervention.

“Air Canada needs to behave like the private sector corporation that it is and stop running to the government,” he said in a conference call.

“We want a negotiated settlement.”

Air Canada executive vice-president and chief operating officer Duncan Dee said the company’s offer was “very fair.”

“However, as the ACPA has not accepted our final offer by the prescribed deadline, we are left with no option but to exercise our rights under the Canada Labour Code, a decision which we have not taken lightly,” he said in a statement, adding the airline is hoping the pilots will accept this final offer before the lock out.

The carrier said its latest offer was designed to “preserve” the union’s benefits and pensions “while providing the company with increased flexibility to effectively manage its operations, respond to market realities and meet long-term strategic goals.”

Some of the points in the offer include two and three per cent wage increases over the course of a five-year contract; earlier acceleration of pensionable earnings; continuation of defined pension plan for current employees and a promise to advise the union on plans for a low-cost carrier, among others.

While the deadline passed, pilots will still vote on the offer. The union recommended they reject it.

“Having provided ongoing concessions amounting to several billion dollars over the last nine years, it’s high time that Air Canada recognized the value created by its experienced professional pilots who fly thousands of passengers safely and efficiently to their destinations every day,” pilots’ Strachan said in a statement Thursday.

Meanwhile, the airline’s largest union — the International Association of Machinists and Aerospace Workers (IAMAW) Local 2323 — set a strike deadline for Monday morning.  

IAMAW members rejected a tentative offer on Wednesday after a federal mediation process because it didn’t address their pension concerns. The Air Canada Pilots Association voted 97 per cent in favour of strike mandate last month.

Air Canada issued a statement Wednesday regarding talks with IAMAW Local 2323 on Wednesday.

“We recognize that the IAMAW’s notice of strike action in the midst of the peak March Break travel period will cause uncertainty for thousands of our customers. The lines of communication remain open and we are hopeful that there remains sufficient time to avoid a work disruption,” Duncan Dee, Air Canada’s executive vice-president and chief operating officer, said in a statement.  

Pearson airport officials expect 103,000 travellers to pass through the facility on Thursday and another 108,000 on Friday. About 90,000 people fly in and out of the airport on a normal day.

With files from The Canadian Press