Air Canada employees paying for recession: union

Unionized Air Canada workers set to hit the picket lines Tuesday say they are tired of management making them pay the price of international crises such as SARS, 9/11 and the recent global financial crisis.

"The gains that we made as a unionized workforce at Air Canada have to be maintained. It's not our fault that we had a global financial crisis," Ken Lewenza, president of the Canadian Auto Workers, told CTV News Channel on Saturday.

"We bargained these pension plans over four decades ago and as a result of the global financial crisis and a top-heavy salary structure for CEOs, we're being asked to feel the pain."

In a message to customers published on CAW's website Thursday, a day before it issued a 72-hour strike notice, the union cited increased labour productivity and decreased work force as a reason for workers contemplating walking off the job.

"We are working with 45 per cent less staff ... Since 2000, real wages after inflation for CAW members at Air Canada have declined year after year, to the tune of over $10,000 in purchasing power for each member."

Meanwhile, the union says shareholders and top-executives are only making more money.

Last year, CAW took issue with Air Canada's decision to award the Montreal-based airline's chief executive Calin Rovinescu a $4.6-million, 77 per cent increase from the previous year.

Rovinescu became CEO of the airline in 2009. That year, he earned $2.6 million. According to his original contract, if Rovinescu remains as head of the airline until March 31, 2012, he will also be able to collect a $5 million retention payment.

That deal looms over the present negotiations where one of the main sticking points between the airline and the CAW has been a proposal to change the airline's pension plan for new hires.

Under the suggested changes, when new employees retire their pension would be based on a "defined contribution" scheme. That means Air Canada would pay a set minimum contribution, but the amount the employee actually collects would be based on how well the airline's investments are performing.

But the union would rather stick with the present "defined benefit" pension plan that sees retirees paid a predictable, pre-determined amount regardless of how much money the company is making.

After 10-weeks of negotiations, the union gave the airline a 72-hour strike notice on Friday -- giving warning to would-be travellers that Air Canada's customer service and sales staff could be off the job by 12:01 a.m. Tuesday.

But even as ticket-holders brace for long lines and flight delays in the event workers do hit the picket lines, the airline says it's already got a contingency plan in place.

In the event of a strike, Air Canada says it will implement a contingency plan that includes operating a regular schedule.

In a statement to customers published on its website Saturday, Air Canada said, "should a strike occur, we have non-unionized staff trained and available to ensure a continued operation. They will be on-hand at airports to assist you with things such as using our self-serve check-in and baggage-tagging kiosks."

However, not everyone is appeased by the promise.

According to the CEO of discount travel agency itravel2000, unless the contingency plan involves running all the flights, the looming strike may result in "absolute havoc."

"There's less supply in the market place and you're going to see a run for the other airlines. And we've seen that. Significant bookings are going to charter airlines and other airlines, whether U.S. carriers or European carriers because people cannot afford to alter their travel arrangement," Jonathan Carroll told CTV News Channel on Saturday.

Porter Airlines spokesperson Brad Cicero said, however, that he hasn't noticed any upswing in ticket sales as a result of the labour dispute.

"It's a little early for us to say that we're seeing any particular change in business in the last couple of days," he told CTV News Channel on Saturday.

But he said that in the event of strike, Porter does have the ability to accommodate travellers seeking alternative travel arrangements.

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