AC asked the Canada Industrial Relations Board for new vote

Rebel · Post by **Rebel** » Sat Jun 25, 2005 2:18 am

Airline seeks Labour Board intervention
Disagreement stalls Air Canada acquisition of new planes stalled: Dispute with pilots

Paul Vieira and Chris Sorensen
Financial Post
June 25, 2005

Air Canada is asking federal regulators to end a disruptive labour dispute over pilot seniority that forced the airline to scuttle a deal to purchase 32 modern, long-range Boeing aircraft.

In a filing yesterday, Air Canada requested that the Canada Industrial Relations Board (CIRB) either settle the seniority issue with a new ruling or force the pilots who hijacked a vote related to the purchase of the new aircraft to "cease their illegal strike activities."

"The vote ... concerning working conditions for pilots flying Boeing 777 and 787 aircraft was decisively influenced by the illegal consideration of the unrelated question of pilot seniority," Air Canada argued in the filing.

The Boeing order, valued at $6.1-billion, had to be cancelled after members of the pilots union failed to ratify changes to their contract to accommodate the new aircraft. But the result had little to do with the terms of the deal. Rather, it was a show of frustration by a group of pilots employed prior to Air Canada's merger with Canadian Airlines in 2000.

Those pilots want a resolution to a long-standing dispute over seniority, and their claims that an earlier CIRB ruling pushed former Canadian pilots ahead of them on the seniority list.

Robert Milton, the head of Air Canada's parent, expressed confidence yesterday that the long-standing seniority issue will eventually be resolved, allowing Air Canada to proceed with its Boeing order.

"From my standpoint, there is little doubt, in time -- I don't know when -- we will see these new airplanes," Mr. Milton, chief executive of ACE Aviation Holdings Inc., told reporters after a speech to the Ottawa Chamber of Commerce.

"But at this stage, we have cancelled the order. And when [the pilots] are ready, we will get things back on track."

Mr. Milton described the pilot vote as a "calling out" for a settlement in the seniority battle.

"I have hundreds of messages from pilots who voted 'No,' who say they want these airplanes," Mr. Milton said. "So, it will be worked out. I am not worried about it. Our pilots know that these airplanes are good for them. And so that's why I am confident that, in time, we will figure this out."

Representatives for the pre-merger Air Canada pilots say they have no quarrels with the company but with labour regulators. Seniority is a key matter for the pilots because it determines what types of planes and routes they operate.

The Boeing order consisted of 14 of the aircraft maker's vaunted "Dreamliner" brand and 18 Boeing 777s. The long-range jet order, was intended to replace the carrier's ageing fleet of Boeing 767 wide-body jets and bolster its new business plan, which increasingly focuses on long-haul, point-to-point international flying.

The purchase, however, was contingent on a labour deal since it covered pay rates and working conditions related to the operation of the new aircraft.

For the time being, Mr. Milton said the airline would pursue used aircraft and "grow with those until this comes together. And in my view, it will come together."

Meanwhile, he said the airline had no choice but to boost air fares this week to deal with oil prices that are hitting the US$60 a barrel mark. He said a potentially bigger impact could be felt in the United States, where a number of airlines continue to struggle under bankruptcy protection.

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loopy · Post by **loopy** » Sat Jun 25, 2005 6:10 am

OK, I'm just an interested observer, but what does it mean. Is AC now trying to spin this that the no vote was only pilots disgruntled over the seniority issue? Are they trying to gloss over the fact that many voted no for other reasons, like not wanting to make any more concessions? Don't get me wrong, I think it is good that management shows some interest in having labour peace. Long overdue. It wasn't the only issue here, though.

quickflight · Post by **quickflight** » Sat Jun 25, 2005 6:43 am

It was however the biggest issue. The agreement for the aircraft was not that bad. Those not concerned with the seniority issue and voted no were more likely just fed up with uncle milty's threats.

boeingboy · Post by **boeingboy** » Sat Jun 25, 2005 9:32 am

I don't think the pilots really care about big red. Everyone talks about "it was this" or "it was that".

It doesn't matter what the real reason was - as the pilots are not united. The "no" vote only accounted for about 33% of the pilots - and that is what is truly sad.

Regardless of what my personal feelings or thoughts are about AC or their unions - The fact remains that I think if the pilots didn't like something - wether it was wages or senority or whatever else, they should have stayed united and voted. By doing this it looks like you have a bunch of crybabies in one corner, a bunch of guys that think this is ok in another corner, and the rest don't care either way. Talk about division.

Kosiw · Post by **Kosiw** » Sat Jun 25, 2005 10:04 am

And don't think Milton won't use that "division" within the pilot union to his advantage.....what's the old saying "divide and conqueor".....

quickflight · Post by **quickflight** » Sat Jun 25, 2005 12:11 pm

uncle milty is the best at it too...