slawko
Posts: 3742
Joined: Tue May 25, 1999 7:40 am

Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 11:05 am

Well thats one more Airline that CUPE is helping to run into the ground...Thats got to be at least three now....WELL DONE!!!  Sad

http://ca.news.yahoo.com/030211/5/rrkl.html
Tuesday February 11 9:10 AM EST

CUPE Union Rejects Air Canada Costs-Cutting Plea


TORONTO (Reuters) - The union representing Air Canada's flight attendants has rejected the airline's request to cut labor costs, damaging Air Canada's plans to slash costs in an effort to rein in deep losses.


The Canadian Union of Public Employees said in a statement posted on its Web site that new concessions were not warranted and a contract finalized five weeks ago should stand.


"The current bargaining committee is not willing to enter into discussions with the company for further changes to our new collective agreement," said the Feb. 7 statement.


"Nothing in what the company told us about the future of our industry was new or not known at the time of bargaining late last year. The company's concerns should have been addressed then."


It added: "To now attempt to get more outside of regular bargaining is to make a mockery of our new contract and the collective bargaining process. A deal is a deal."


Air Canada said last week that it was looking for C$650 million ($425 million) in cost cuts to improve the airline's health after it reported a C$364 million fourth-quarter loss.


CUPE said that would amount to "a 23 percent payroll cut."


The Montreal-based airline faces strong competition, higher than expected losses and rising fuel costs. It has some C$12 billion of debt and aircraft lease obligations.


The Globe and Mail newspaper said other unions were ready to negotiate with Air Canada on cutting costs. It said the Canadian Auto Workers union, which represents customer service workers, said it will consider changes to work rules but will not accept pay cuts or layoffs.


The International Association of Machinists and Aerospace Workers is willing to discuss Air Canada's requests through collective bargaining negotiations already under way.


The union representing the airline's pilots says it will hire financial advisors to do due diligence on the company, the newspaper said.

"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 11:26 am

Amazing. I don't understand why CUPE wouldn't at least want to negotiate something with the company in lieu of the greater than expected losses, rising fuel prices, and the looming war with Iraq. They will have more to lose by standing firm, rather than trying to negotiate with the company. However Slawko, it's very simplistic and wrong to blame CUPE on the death of airlines in the past. They might have had some contribution to it, but I would hardly put the blame on them.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
lymanm
Posts: 1100
Joined: Tue Jan 23, 2001 2:30 pm

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 11:53 am

While I don't blame AC for demanding these concessions, why didn't they demand them when negotiations were going on 7 weeks ago? Surely AC knew about their then-upcoming Q4/2002 loss...

"The company's concerns should have been addressed then."
buhh bye
 
User avatar
yyz717
Posts: 15689
Joined: Mon Sep 10, 2001 12:26 pm

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 12:52 pm

Amazing. I don't understand why CUPE wouldn't at least want to negotiate something with the company in lieu of the greater than expected losses, rising fuel prices, and the looming war with Iraq.

Nuno, have you EVER known ANY union to put the company's interests on their radar screen, let alone a priority. These AC unions are a bunch of dinosaurs.

While I don't blame AC for demanding these concessions, why didn't they demand them when negotiations were going on 7 weeks ago? Surely AC knew about their then-upcoming Q4/2002 loss...

Excellent point Lymanm......further proof of AC mgmt incompetence.



I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Samurai 777
Posts: 2000
Joined: Thu Jan 27, 2000 2:56 pm

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 2:31 pm

This is great, juuuust great!

I've got flights on AC booked for YVR-YYZ-YHZ return in July this year! I'm wondering if AC will still be around by that time if Uncle Milty can't get Jazz off his hands and can't wringe money frm the unions! Or if a strike'll happen!

Looks like the pilot's union doesn't exactly trust AC's management's word about its financial state.
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 2:46 pm

I can see a strike happening this year at Air Canada. This year is not starting out well, and will only be a little more positive if the war against Iraq does not happen and we start to see improvements in traffic levels. A lot will have to happen for that though.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
palebird
Posts: 75
Joined: Sun Jan 28, 2001 1:41 pm

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 3:04 pm

Air Canada is a dinosaur that will probably topple this year. If it doesn't topple it will be significantly changed(ownership, size). How can you blame the FA's when they just hammered out a deal. Nobody working at Air Canada believes the management nor the unions. How can you? They blatantly lie to all parties and could care less about "their people". The atmosphere is poison. They have guidelines to follow hammered out by unions and management but regularly break the rules. Their response to the people slighted? Tell someone who cares. So it goes to the union for grievance. And on and on.And Air Canada management created all of this. This is going to be a dirty one and I am in the middle of it. In twenty years in this industry I have never seen so much BS. The other night JAZZ was grounded country wide due to power outages taking down their flight dispatch computers in the Maritimes. Several days later same system went down again. This time it was a computer virus or so we were all told. But the worst was witnessing the way some of the station attendants handled customers.Myself flying company standby I could only sit and watch.If Air Canada goes down it deserves it because they(management) have created a huge, money gobbling, indifferent monster. Wage cuts/rollbacks will do nothing to save them. It is far beyond that. 12 billion in debt and no real assets to sell! The aircraft are already sold and leased back.Could sell real estate but who wants it? Could sell Jazz but who wants it?It loses far too much money.And if they sell Jazz what does mainline do for a feeder airline?That would be like cutting off your legs and still expect to walk to the store. I don't want it to go down as it is my bread and butter but things do not look good.
 
Mark_D.
Posts: 1360
Joined: Wed Aug 01, 2001 9:55 am

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 4:24 pm


Just sad that Tango and especially Zip --and okay, Jazz too, a bit-- didn't have another year of getting set up or stabilised or whatever before all this debt and labour onslaught comes knocking at the door and carrying everything else along in its wake. But ah well.. it does look like this is really going to be a shakedown year, for the AC extravaganza as a whole.

(Plus, adding CUPE-style salt to the wounds on top of it.. o cielo,they need that like a hole in the head  Insane )

 
lymanm
Posts: 1100
Joined: Tue Jan 23, 2001 2:30 pm

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Wed Feb 12, 2003 5:42 pm

"Excellent point Lymanm......further proof of AC mgmt incompetence. "

Yes, just when I have finished writing an excellent post in another topic blaming *other* factors than managment for AC's current situation, they go ahead and do something like this! Argh!
buhh bye
 
1world
Posts: 198
Joined: Mon Jan 28, 2002 9:15 am

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Thu Feb 13, 2003 3:36 am

Onex Corporation is probably already working on a plan to buy AC when the time is right. They tried before and it would have cost much more but now it will be a bargain.

I really feel bad for the situation that the employees are in now with all the uncertainty but it looks like bankruptcy will be the only option. CUPE Isn't backing down and I think they have a point but s**t will hit the fan sooner or later and many of their unionized workers will be out of work.
YYZ spotter
 
Guest

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Thu Feb 13, 2003 4:05 am

CUPE: Cutthroat, Uncompromising, Poisonous Entity.

The fools. The bloody, bloody stupid stubborn tunnel-visioned fools. As a former CUPE member for 5 years, I understand exactly what I say here, and how the "Waco, Texas - Jonestown" mentality applies to the vast majority of bargaining members. But that aside, AC senior mis-management themselves certainly contributed to CUPE's arrogance and bloated illusions/ego.
1World is correct, theoretically, that CUPE cannot be entirely blamed for
their decision re AC cutbacks. AC has fueled CUPE's fire for far far too long, then they have the balls to do a quick-turn and attempt to eradicate
collective agreements (or certain articles contained within) that they approved. Give me a break.

It's times like these when I am SO glad I am no longer an FA.



 
slawko
Posts: 3742
Joined: Tue May 25, 1999 7:40 am

RE: Cupe Rejects Air Canada Cost Cutting Plans...

Thu Feb 13, 2003 6:18 am

Nuno I said Helping, I didnt put all the blame on their doorstep, but they have played a big part in a number of other airline failures over the years, you have to accept that.....

My guess is that AC managemetn could not afford a major strike at the time of the cupe/FA negotiations, and agreed to what ever they wanted, or most of it anyway, in an effort to make the company look a bit stronger at the time. Now the company is in a better position to get concessions (or so they thought) But if they are unable to get an agreement out of CUPE and the others then Bankruptcy protection will solve the union contract issue very quickly...and I doubt that CUPE will be happy with that at all....
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada

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