* Full impact of labor dispute seen in 7-9 days
* Raitt says Canada's economic well-being on the line
* Opposition says collective bargaining being undermined
OTTAWA, June 16 (Reuters) - It would take little more than a week for a strike at Air Canada Inc (ACa.TO [2]) (ACb.TO [3]) to have serious effects, Labour Minister Lisa Raitt said on Thursday in justifying plans to legislate strikers back to work quickly.
Before the strike began on Tuesday, Raitt asked the union and the airline what effect a strike would have, and she said both parties responded that Air Canada would be able to cope at the start.
"In both cases, they estimate it was between seven and nine days before we would see an almost complete shutdown of the system," Raitt told a House of Commons debate on whether to speed back-to-work legislation through quickly.
Given the House's current schedule, the earliest the bill could pass would be next Monday, seven days after the start of the strike by 3,800 striking check-in and call center staff. Passage would be assured because of the Conservative government's majority in Parliament.
Opposition politicians roasted Raitt for having served notice on the first day of the strike that she would introduce the legislation forcing employees back to work.
"It's a wrong message ... to the industry and to any of the Crown corporations, because it's the only thing they have to do now -- just go into negotiations, do nothing and the government (will) come in and do it for them," said Yvon Godin of the main opposition New Democratic Party.
"This has been a blow to the head of collective bargaining in this country," Liberal lawmaker Rodger Cuzner said.
Raitt said every avenue had been exhausted and the time to intervene was now.
"The health of Canada's economy, the livelihood of families, the competitiveness of businesses and the reputation of Canada as a reliable trade partner are all on the line," Raitt said.
While negotiations continue, Air Canada has deployed 1,700 of its managers at airports across Canada to take the reins at check-in and ticketing desks, and diverted customer calls to centers in the United States. It has also urged passengers to check in online and avoid checking baggage if possible.
Shares of Air Canada were down 3 Canadian cents at C$1.98 by late Thursday morning on the Toronto Stock Exchange.
The Montreal-based company is also in contract talks with four other unions, including its pilots, flight attendants and maintenance workers, after agreements expired earlier this year.
Pensions have emerged as a key bone of contention in negotiations. Air Canada wants to do away with its defined benefit plan for new hires as it looks for ways to reduce its deep pension deficit.
It has also proposed changes to pensions for existing employees that would see some having to work more years for the same benefit.
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