Union frustrated with slow talks as Air Canada strike looms tonight

The Canadian Auto Workers union says contract talks are moving slowly as it tries to get a deal to avert a strike at midnight Monday of its Air Canada ticket agents.

“There’s really been no change since yesterday,” said CAW president Ken Lewenza in an interview on Monday morning. “I’m very disappointed actually.”

The union made a counter-offer on pensions—one of the main sticking points—to the company and was expecting a response late Sunday night, but had not received anything as of 10:30 a.m. Monday. The union opposes a proposal to move to a defined contribution plan, limited to new hires only, from a defined benefit plan, which has a guaranteed payout.

The CAW has been talking tough, saying its 3,800 members across the country will walk off the job, at midnight Monday if there’s no new agreement.

Lewenza said last week that the CAW would not be considering rotating strikes or pushing back its deadline, arguing that the full threat of a labour disruption forces decisions.

Air Canada has insisted that it is confident it can get a settlement, but has made contingency plans in the event of a walkout, with management staff trained to do check-in and gate duties.

On its website, the airline is urging passengers who are flying in the coming days to familiarize themselves with online check-in and booking tools.

It is also asking travellers to check-in up to 24 hours before a flight, arrive early at the airport, and travel without any checked luggage, if possible.

Many of Air Canada’s employees are frustrated because they were expecting to make gains after making sacrifices to help the airline, which had been on the brink of bankruptcy.

The union wants to see a wage increase to make up for previous cuts and freezes, which, when inflation is factored in, it says has translated into a real drop of 10 per cent over the past decade.

The union points out that top executives received lucrative compensation packages, including president and CEO Calin Rovinescu, whose total compensation last year was $4.5 million, up from $2.6 million in 2009.

Pensions are an especially sensitive issue for the unionized workers, who previously made concessions to give the airline some breathing room on making payments to close the gap on past deficits. The company has been making regular contributions all along.

Air Canada has about $13 billion in pension commitments, with 26,000 active employees and 29,000 retirees. As of January, based on preliminary estimates, the pension plan is underfunded by about $2.1 billion.

The airline says the shortfall is too high, and it is not sustainable, putting “at risk both the viability of the company and the pensions of all employees.”

Air Canada is keen to avoid labour disruptions as it heads into the peak summer season, when it makes most of its money. Its other unions are in different stages of negotiations, but workers clearly aren’t happy.

The pilots rejected a tentative deal that included the proposed switch to a defined contribution pension system, for new hires only. They also balked at a plan for the creation of a discount airline to fly to vacation destinations in Europe and down south.

The flight attendants, which are represented by the Canadian Union of Public Employees, have filed for conciliation, and could be in a legal strike position in late August.

Baggage handlers and mechanics, represented by the International Association of Machinists and Aerospace Workers, are also in talks.

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