Pilot agreement ratified

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Airbrake
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Pilot agreement ratified

#1 Post by Airbrake » Fri Oct 31, 2014 6:36 am

http://finance.yahoo.com/news/air-canad ... rc=applewf

MONTREAL, Oct. 31, 2014 /CNW Telbec/ - Air Canada welcomes today's confirmation by the Air Canada Pilots Association that its members have ratified a landmark agreement on collective agreement terms for ten years.

"This ten-year agreement with the Air Canada Pilots Association is a ground-breaking development which allows us to accelerate the implementation of our business strategy on a win-win basis with our pilots," said Calin Rovinescu, President and CEO of Air Canada. "The new agreement provides greater stability and long term cost certainty as well as a framework for a strong partnership with our pilots. It is also the most tangible indication of the shift in culture underway at Air Canada.

"With this agreement now in place, we can focus our efforts on long-term profitable growth at both Air Canada and rouge for the benefit of our employees and all of Air Canada's stakeholders. I thank the teams representing both ACPA and management for their insight, commitment and determination in reaching this agreement."

The agreement is subject to certain openers and benchmarks over the 10 year period.

In addition to labour stability and long term cost certainty, the agreement also provides for increased flexibility with respect to regional airline capacity purchase agreements to help ensure cost competitiveness. In addition, it facilitates the evolution of Air Canada rougeTM into a stronger leisure carrier with improved fleet renewal flexibility and terms. As well, the agreement provides additional codeshare and joint venture flexibility and scope.

The agreement has been approved by the Air Canada Board of Directors.

The Air Canada Pilots Association membership comprises approximately 3,000 pilots.

Air Canada is Canada's largest domestic and international airline serving more than 180 destinations on five continents. Canada's flag carrier is among the 20 largest airlines in the world and in 2013 served more than 35 million customers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 73 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,316 airports in 192 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax that ranked Air Canada in a worldwide survey of more than 18 million airline passengers as Best Airline in North America in 2014 for the fifth consecutive year. For more information, please visit: www.aircanada.com.
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Splash
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Re: Pilot agreement ratified

#2 Post by Splash » Fri Oct 31, 2014 7:20 am

Does anyone have the results of the ratification vote that they feel would be appropriate to post. There seemed little doubt that it would pass.
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rudder
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Re: Pilot agreement ratified

#3 Post by rudder » Fri Oct 31, 2014 7:24 am

92% voted. 84% voted yes.
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Splash
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Re: Pilot agreement ratified

#4 Post by Splash » Fri Oct 31, 2014 7:29 am

rudder wrote:92% voted. 84% voted yes.
Wow! :shock:
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Re: Pilot agreement ratified

#5 Post by Old fella » Fri Oct 31, 2014 7:37 am

Certainly seems like the AC pilots membership were, for the most part, content with the provisions for this 10 yr agreement. From my personal prospective( yes, I know y'all are sick of my pontification) but we always got first rate A+ service from Air Canada and will continue, no doubt.

:partyman:
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watermeth
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Re: Pilot agreement ratified

#6 Post by watermeth » Fri Oct 31, 2014 7:52 am

that's good for AC's pilots.
Still, what's the other side of the coin - or is that just plain long term planning and pure generosity ?
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Re: Pilot agreement ratified

#7 Post by altiplano » Fri Oct 31, 2014 10:39 am

No real downside other than wondering how much more we could have got.

If the plan comes together as presented it will mean significant growth. Big if though and there are reopeners if it's not unfolding well.

The 2%/yr for 10 years is kinda meh... depending on the way things go for the corporation and economy over then next decade could be good or bad, at Ieast it's moving the right direction...
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Re: Pilot agreement ratified

#8 Post by watermeth » Fri Oct 31, 2014 3:04 pm

altiplano wrote:If the plan comes together as presented it will mean significant growth.
Always heard about that plan but never had the opportunity to read its description. Would you have a reference to direct me to ?
Thx
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Re: Pilot agreement ratified

#9 Post by Dockjock » Fri Oct 31, 2014 4:06 pm

We've been asked not to reveal details because it is obviously commercially sensitive information. Suffice it to say that it will be over the next 10 years probably the most significant expansion in the company's history. Not all of it is pure growth ie. more fins, a lot of it is upsizing aircraft as they get replaced. Exciting times, now let's hope we pull it off.
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Re: Pilot agreement ratified

#10 Post by Big Pistons Forever » Fri Oct 31, 2014 4:30 pm

altiplano wrote:No real downside other than wondering how much more we could have got.

If the plan comes together as presented it will mean significant growth. Big if though and there are reopeners if it's not unfolding well.

The 2%/yr for 10 years is kinda meh... depending on the way things go for the corporation and economy over then next decade could be good or bad, at Ieast it's moving the right direction...
Sad to say but the reality in todays airline jobs is if you can keep what you already have over the longer term you can call that a win.......
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Re: Pilot agreement ratified

#11 Post by MRP » Fri Oct 31, 2014 4:52 pm

Here's a better article with more details

http://www.theglobeandmail.com/report-o ... e21401537/
Air Canada’s pilots have ratified a 10-year contract that includes a large signing bonus, wage increases of more than 20 per cent over the life of the pact and an improved profit-sharing formula that Canada’s largest airline says provides stability to support growth.

Some of the promised benefits are contingent on the carrier achieving its profit and growth targets, but union president Capt. Craig Blandford said those goals should be achievable.

“It’s an investment in the airline’s future,” Blandford said Friday after the deal was announced.

“If they follow through on their vision and their plan for growth, which is not outrageous, then we’ve given 10 years of labour peace.”

The agreement includes a $10,000 signing bonus, two per cent annual wage increases, higher starting pay, improved pension benefits and improved profit sharing, Blandford said in an interview.

The collective agreement, which expires in September 2024, includes provisions to resolve disputes that may arise every three years during negotiations on specific items. If the airline meets its growth targets, pilots give up the right to strike by agreeing to send disagreements to mediation or arbitration.

If the targets aren’t met, pilots regain their full rights under the Canada Labour Code, including the right to strike.

Blandford said he’s hoping that a new relationship developed between the airline and its highest-paid employee group will ensure that disruptions are a “non-starter.”

“We’ve just come up with this deal without any outside pressure or help so we’re hoping we can carry that through in the next 10 years – that kind of relationship of mutual respect for each other when we sit down and talk.”

The deal is the first with pilots since 1996 to be achieved without strike or arbitration.

Air Canada’s last round of labour talks were among the most acrimonious in its history. They included a 12-hour illegal walkout by baggage handlers and ground staff that disrupted flights, the tabling of a back-to-work bill in Parliament and a final-offer selection in which an arbitrator sided with the airline.

That coloured the talks this time and was a catalyst to reaching an early agreement, Blandford said.

The pilots’ union said its 3,000 members voted 84 per cent in favour of the deal, with 92 per cent of members voting.

Air Canada (TSX.AC.B) called it a landmark deal that is tangible evidence of a culture shift.

“The new agreement provides greater stability and long-term cost certainty as well as a framework for a strong partnership with our pilots,” CEO Calin Rovinescu said in a statement.

He said it also provides increased flexibility for service provided by its regional network partners and the renewal of the fleet at low-cost subsidiary Rouge.

In addition to a signing bonus and general annual wage increases, pilots will receive two per cent cash bonuses in both 2016 and 2017.

Starting wages will increase about three per cent to $50,000 and reach $62,000 by the fourth year. These wages will apply to pilots at both Air Canada and Rouge. More senior Rouge pilots will earn less than mainline pilots, but have higher overtime rates, fly more hours and have the ability to move more quickly to captain. An Air Canada Boeing 777 captain with 12 years experience can earn up to nearly $300,000 a year.

The agreement also introduces a maternity benefit that tops up employment insurance benefits. Air Canada has 174 women pilots.

And it includes a new profit sharing plan that mirrors the one that applies to upper management. The pilots as a group are eligible for between four and eight per cent of the pilots total payroll if the airline reaches its target of achieving 15 per cent EBITDAR (earnings before interest, taxes, depreciation, amortization and airplane rent).

The union has developed an internal mechanism to divide among pilots up to $38-million that can be earned annually based on the current payroll of $475-million.

Rouge continues to be limited to 50 aircraft, but it can alter the mix of narrowbody and widebody planes and use other types of aircraft.

Talks began in June after the airline approached the union to renew a five-year retroactive contract imposed by an arbitrator in 2012. The contract was set to expire in April 2016.

The airline will now turn its efforts on reaching collective agreements next year with other unions representing flight attendants, mechanics, call centre and airport workers.

Blandford said the pilots hope other unions will also strive to reach deals that give the airline room to grow and be profitable. “If that’s suitable for their members then I don’t see any reason why they wouldn’t follow that path,” he said.

Chris Murray of AltaCorp Capital called the agreement “historic” that will make Air Canada more cost competitive.

“In the near-term, we believe (it)...should offer some comfort that new contracts with other groups are achievable during what should be a much more conventional bargaining process than what occurred during the last set of negotiations,” he wrote in a report.
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watermeth
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Re: Pilot agreement ratified

#12 Post by watermeth » Fri Oct 31, 2014 6:52 pm

If the airline meets its growth targets, pilots give up the right to strike by agreeing to send disagreements to mediation or arbitration.
That's risky agreement but I guess union got some kind of guarantee. with that nothing will prevent the company to operate at least.
If they follow through on their vision
What is the vision ? Nobody will ever tell I guess. It might be a long haul strategy with some shares sold to a Middle East operator like EK buying half of Alitalia and Qantas and other european airlines to expand their network...? Would be cool.
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snag
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Re: Pilot agreement ratified

#13 Post by snag » Fri Oct 31, 2014 7:50 pm

The Company is required to meet set growth targets at each 3 year mark. The union alone gets to determine if those targets were met.
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leftoftrack
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Re: Pilot agreement ratified

#14 Post by leftoftrack » Sat Nov 01, 2014 8:10 pm

We're there some extra lye junior captains on the rouge 767 who are now extremely well paid for there YOS?
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Re: Pilot agreement ratified

#15 Post by CSk3RampBOY » Sun Nov 02, 2014 2:46 pm

If they follow through on their vision
What is the vision ? Nobody will ever tell I guess. It might be a long haul strategy with some shares sold to a Middle East operator like EK buying half of Alitalia and Qantas and other european airlines to expand their network...? Would be cool.[/quote]

Wrong! Alitalia is 49% owned by Etihad and not Emirates. As for Qantas, it only has a code sharing partnership with EK. Under the Qantas sale act, foreign entities can own up to a maximum of 35%. Additionally, a single foreign entity can own a maximum of 25%.

I seriously doubt Air Canada would deal with EK given the lack of strategic value and strong reliance on Star Alliance.
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Re: Pilot agreement ratified

#16 Post by Leafs » Sun Nov 02, 2014 3:04 pm

Dockjock wrote:We've been asked not to reveal details because it is obviously commercially sensitive information. Suffice it to say that it will be over the next 10 years probably the most significant expansion in the company's history. Not all of it is pure growth ie. more fins, a lot of it is upsizing aircraft as they get replaced. Exciting times, now let's hope we pull it off.
That's exciting to hear. Any ball park figures on how many pilot positions this expansion will produce?
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Dockjock
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Re: Pilot agreement ratified

#17 Post by Dockjock » Sun Nov 02, 2014 6:09 pm

New pilot positions will come from two reasons, retirements and expansion. Retirements "they say" are 1000 boomers...wave was supposed to start in 2012 but is delayed 5 years by retirement at 60 being removed. Expansion, who knows. A few hundred maybe? Put those together and its...a lot. Good news on the horizon, approaching slowly.
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Re: Pilot agreement ratified

#18 Post by BE20 Driver » Tue Nov 04, 2014 9:01 pm

Congratulations. From what I'm hearing, it is a good all around contract.
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