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Air Canada's customer service agents on strike
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"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." Every year the world changes a bit, and every year, the unions just stay the same.
Jon in London ON
Air Canada ticket holders advised to expect delays
talking about
Air Canada's customer service agents on strike
CTV.ca News Staff
Date: Tue. Jun. 14 2011 12:34 AM ET
Air Canada's 3,800 sales and customer service employees are on strike, after late-night contract negotiations failed to reach a deal on two main issues: pensions and wages.
The workers will be on the picket line Tuesday.
Earlier on Monday, hours before the midnight strike deadline, CAW president Ken Lewenza had suggested that an agreement was a long shot.
"We did a lot of work but it just seems to me that we should be moving a little bit quicker than we are right now," Lewenza said.
He said the union put forward a proposal that would achieve pension security and guaranteed wage increases after 10 years of uncertainty. But he offered no further details.
Meanwhile, Air Canada ticket holders were told that scheduled service would continue regardless of the airline's sales and customer service staff walking the picket lines Tuesday morning.
But would-be travellers were advised to plan ahead if they want to avoid delays.
In total, 3,200 airport customer service agents and 600 call-centre staff are walking off the job.
Chief among the sticking points is Air Canada's proposed changes to workers' pension plans.
Under the suggested changes, new employees would sign onto a "defined contribution" pension that would see them collect a set, pre-determined lump sum at retirement.
But the Canadian Auto Workers local representing the workers would rather stick with the present "defined benefit" pension plan that gives retirees regular, predictable payments. While employees typically favour the ongoing benefits of the latter plan, employers can find themselves saddled with additional costs if their pension fund runs short.
Air Canada was forced into creditor protection in 2003 due in part to the cost of the company's pension deficit. That figure stands at $2.1 billion today.
Air Canada's unions agreed to a number of concessions when the company restructured back in 2004, but left the defined-benefit pension plans untouched. And CAW president Ken Lewenza told CTV News his members aren't willing to negotiate those benefits away now either.
"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," Lewenza told CTV News Channel as negotiations continued at a downtown Toronto hotel through the weekend.
Both the airline and the union have maintained they want to avoid a strike and federal Labour Minister Lisa Raitt has weighed in too, urging both sides to reach a deal or risk impacting Canada's economic recovery.
Air Canada has promised to enact a contingency plan aimed at ensuring that flights continue to take off and land as scheduled.
"All bookings will be honoured," the airline said in a statement posted to its website.
"Management has been trained to provide assistance at the airports that would be affected," the airline explained, warning also that anyone planning to check-in at the airport's self-service kiosks should expect longer-than usual lineups.
Travellers who want to avoid delays are nevertheless advised to familiarize themselves with Air Canada's online self-service tools for booking tickets, making changes and obtaining boarding passes.
Air Canada says if its workers go on strike, the airports in Vancouver, Calgary, Edmonton, Winnipeg, Toronto Pearson, Ottawa, Montreal, Halifax and St. John's, NL will be affected.
With files from The Canadian Press
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If 5000 jobs can be so vital to the nation's economy, they should get what they ask for in bargaining. Simple.
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Comments are now closed for this story
Mike
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And for those who still think the government has some monetary connection to this airline are just as "in the dark".
Doug
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brian hancox
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How is it the CEO just got handed a defined benefit pension of over $350,000.00 a year when he is 65 and on top of that is given a cheques for $5,000,000.00 just for staying on until 2012?
Lastly, wouldn't some of the in excess of eighty million paid to AC's last CEO come in handy now? On top of that he is being paid as a consultant?
Security Regulator's should have been all over this company years ago. They move 85% of the freight in Canada and a high school graduate could run this Company better.
The real question for me is let's all ask AC to release the amount each upper management employee received per year for a bonus over the past three years?
Totty
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C noevil
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Keith Garrow
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Unionized worker
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They choose to not fund their pension obligations and then cry poor.
Joe Spumolio
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SB
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no mail no flight
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t roblee
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Dan in Northern Ontario
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Phil in Victoria
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Now AC want to strike? 'Nuff said.
Vince
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For them to go on strike like this will only make more customer turn their backs towards them and fly with someone else. I mean, I for one, is leaning towards that as well, as their service these past few years haven't been on par with most companies out there. Esp with my last flight with them, their plane was delayed up to 2 hrs. It was a short flight between YOW to YYZ. The delay was two times longer than the flight.. How do they manage that?
Can't wait to see how this is going to turn out for the Union Workers.
WatchDawg
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sportshero
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oldguy
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mama
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Reece
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Wendy
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Amar H
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Darrell in Calgary
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Anything On Time
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Jane
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As for Jacques with the West "Red Neck" comment, perhaps the that person should get a life and move back to France!
Regarding the person making a comment about government employees being lazy, I too worked for the government, and all I can say is don't 'tar and feather' everyone with the same brush. Not everyone has a cushy position or are lazy, and the same holds true for the private and public offices!
Nella, NYC
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Tractorgurl
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Dan Smith
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Steve-O
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Does this imply there were no prior delays? Delays are an ongoing issue with any of the airlines.
Jacques
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Thanks
Garry
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Lisa, Edmonton AB
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Realist
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Amy W
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Jeff
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Praire Boy in SK
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Westjet Flyer
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paying customer
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We as Canadians should boycott this company for inflated prices and horrible service. One example, in 2009, I flew to Germany with Lufthansa I purposely chose Lufthansa. I had a great flight from Montreal to Europe but, on my return flight due to "Star alliance" my return flight was aboard an Air Canada jet....It was late, the service sucked and my bagage was delayed!!!
Europeans and Americans enjoy discount airlines why can't we have the same!
I think all Air Canada staff is overpaid and spoiled for the amount of little work they do (Pilots exempt).
Angel
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Chris Paterson
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Manpal
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How unfortunate that we have few options when travelling internationally thanks in part to the gov't protecting AC in order to keep their people employed.
All that said, AC management should be willing to make the same sacrifices re: pensions, wages, etc that they are asking their employees to make.
Charles, Boston
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Blake
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Darrell in Calgary
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No to Air Canada
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Joe Smegelski
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Joe Szentirmay
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AC doesn't
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Right Wing Nut Job
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mining guy Jim
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WatchDawg
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Tom
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Prof. Pye Chartt
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wstrncehnehdeh in SK
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Jonathan
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Last time I'm with AC.
It's nice that the union say they negotiated these pensions four decades ago, but they certainly didn't care whether they were funded or not. Hell either AC or tax payers will shell it out in the end. The union instead asked for both high pay and high pension, something even Air Canada couldn't afford in the airline hay days of the 70s, let alone now.
As a private worker, unions are my direct enemy. They steal my money through my taxes, or through government regulation which forces me to buy their product. I'll never get benefits or pay like this unless I make it to upper management, and I have a university degree and accounting designation. I'm 30 and never will be so blessed, yet I'll be more the poor and my one income family will struggle by having to pay taxes so these guys can live in Italy in the winters.
eddytoronto
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Eddie in the Peg
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Sam C
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Kelowna_Win
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Mark Spencer
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Ben
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Lz in Edmonton
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Steve G
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George V.
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Steve T
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Whither Canada
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Jon in London ON
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Will
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David Burke
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Randy, London
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