Just minutes after the Conservative government tabled its back-to-work legislation for Air Canada’s striking employees Thursday, the country’s largest carrier and the Canadian Auto Workers announced they had reached a deal.
It came with a major caveat: Ottawa has to be the one to resolve their contentious pension splitting dispute.
It was an abrupt end to a dramatic week in which 3,800 Air Canada sales and service agents walked off the job early in the morning Tuesday after failing to secure a new labour deal. Ottawa was quick to react, however, saying it would table back-to-work legislation just 15 hours after the strike began.
The move was criticized by labour experts and the Opposition parties alike, who noted there was minimal disruption to Air Canada’s network from the strike because roughly 1,700 managers and replacement workers filled in for the striking workers.
“The trouble when the only tool you have in your tool box is a sledgehammer everything starts to look like a rock,” said Bob Rae, the Liberal leader in the Commons Thursday.
But Labour Minister Lisa Raitt defended the government’s stance on the bill, saying she respected the bargaining process and the right to strike, noting her own mother is a card-carrying CAW member. But she said the government would not tolerate the impact the strike would have on the economy or the public.
“We have to protect those who do not have a place at that table. That is our appropriate response as the government,” she said.
Both the CAW and Air Canada’s management said they would prefer a negotiated settlement. And less than an hour after the back-to-work bill was presented in Parliament Thursday, the parties announced they had reached a settlement. Left out of the deal was their outstanding dispute regarding management’s desire to put new hires into a new defined contribution pension plan rather than the existing defined benefit program.
Ken Lewenza, CAW president, said he was disappointed the union was unable to get the pension issue off the bargaining table. But after days of negotiating with the airline after the strike began, the union was faced with a decision whether to continue to fight for the issue, or to get its members back to work.
“For us to prolong the strike as a result of future [employees] would absolutely make no sense at this time,” he said.
The workers were scheduled to return to work Friday morning.
Mr. Lewenza said he was still going to aggressively lobby to maintain the existing pension scheme for new hires throughout the arbitration process.
He also downplayed the significance of the back-to-work bill had in capitulating a settlement, saying the parties were close to a deal without it. Mr. Lewenza did accuse the Tories of undermining the collective bargaining process and workers’ right to strike by doing so.
“I am still dumfounded,” he said. “This is a Tory majority government. The fact of the matter is they are showing a sense of arrogance that is, quite frankly, something the trade movement predicted.”
The four-year tentative agreement that contains wages increases of 9% over its duration will now go before a ratification vote next week. If approved, negotiations on the pension will commence within 60 days under a federally-appointed mediator.
“We are very pleased to have reached a tentative agreement with the CAW,” Duncan Dee, Air Canada chief operating officer said. “It is business as usual at Air Canada.”
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