Air Canada Union Strike Happening During March Break

By Bizclik Editor
Share

Late Tuesday night, the International Association of Machinists and Aerospace Workers (IAMAW)served strike notice to Air Canada. The IAMAW, which represents 8,600 ground crew and mechanics at Air Canada, has been disputing with Air Canada for the past year over contract and wage issues.

The strike could commence as soon as 12:01 a.m. Monday, the 12th, an inconvenient time due to March Break travel.

Two weeks ago, the IAMAW’s members rejected a revised contract set out by Air Canada that was tentatively approved by the union’s leadership. The Financial Post interviewed several union members during a demonstration and reported that the major source of anger for the union members was the perceived lack of respect as shown by measures such as giving chief executive Calin Rovinsecu a $5 million salary during a two-year wage freeze for other employees.

Air Canada remains hopeful that an agreement can be reached before the strike.

"The lines of communication remain open and we are hopeful that there remains sufficient time to avoid a work disruption," Duncan Dee, Air Canada's chief operating officer said in a statement.

Air Canada also assured spring break travellers that airline operations are running as usual at this time and that the company will do everything in its power to maintain full operations if the strike does occur.

RELATED ARTICLES

Canada’s 2012 Economic Outlook: Positive or Negative?

Top 10 Canadian Business Apps

Succession Planning: Shifts in Executive Seats

Read the latest Business Review Canada!

Air Canada has good reason to feel hopeful as the federal government is in its corner against the union striking. Labour Minister Lisa Raitt has been involved in this contract dispute for the past few months and today released a statement strongly encouraging both parties to settle their differences as soon as possible for the good of the Canadian economy.

"I encourage both parties to continue bargaining and reach a new collective agreement as soon as possible," Lisa Raitt said to Reuters. "The government is concerned that a strike is possible and is taking this situation very seriously.

Share

Featured Articles

What is Nestlé CEO Laurent Freixe’s Action Plan?

Newly appointed CEO sets out action plan involving separating water brands into standalone business and boosting advertising and marketing spend

Will Mulberry Turn a New Leaf Under CEO Andrea Baldo?

International British luxury brand cuts quarter of head office staff as newly appointed CEO conducts strategic review

Female Board Members of Biggest UK Companies Paid 69% Less

Female board members of FTSE 100 companies are paid 69% less than male counterparts, as they find themselves frozen out of the biggest roles

Is This the Next CEO of LVMH?

Leadership & Strategy

How Burberry’s New CEO Is Going Back to Basics

Leadership & Strategy

Is Bayer CEO Bill Anderson Running Out of Time?

Leadership & Strategy