Feds move to shut down Air Canada strike only, government, present, agents

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Feds move to shut down Air Canada strike



OTTAWA — The Harper government is signalling it will stop the Air Canada strike dead in its tracks, announcing Tuesday that it will table back-to-work legislation to end the labour disruption that began only hours earlier.


Labour Minister Lisa Raitt made the announcement in the House of Commons, saying she would formally present a notice to MPs later in the day informing them of legislation that would come at a later date.


About 3,800 agents from the country's largest carrier walked off the job across the country Tuesday, in the first major strike faced by Air Canada in nearly 13 years.


"We are concerned by the effect this strike will have on our economic recovery — which is still fragile — and on Canadians in general," Raitt said in the House.


"Canadians gave us a strong mandate . . . to complete our economic recovery, so that's why we will put on notice (Tuesday night) legislation to ensure continuing air service for passengers."


Normally, once notice of legislation is given in the House, the government cannot introduce the actual bill for 48 hours — meaning the back-to-work legislation wouldn't come until Thursday.


Finance Minister Jim Flaherty told reporters he is worried that a lengthy strike at Air Canada could damage the Canadian economy, so he is pleased by Raitt's plan.


"This is a matter of significant economic consequence," said Flaherty.


"Air Canada has a huge section of the market in Canada in terms of travel. It affects tourists, of course, but it affects the business, (it) affects the delivery of cargo in Canada, and from Canada abroad."


Raitt told CBC that the government has jurisdiction to seek back-to-work legislation because of far-reaching effect of the strike, despite it being conducted by workers of a private company.

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"We're actually requesting Parliament to intervene, so we'd be passing a separate Act of Parliament that has jurisdiction . . . so we can absolutely do this," Raitt told CBC.


"The key is that it has to have national significance, it has to have an effect on the economy and it has to effect the general Canadian public interest. That's what we're protecting."


NDP leader Jack Layton said he would rather see a "negotiated settlement" in the dispute, particularly over disagreements on pensions.


"We would like the government to be bringing the sides together in a very proactive way. It would be more preferable than back-to-work legislation."


Layton said all Canadians should look at this labour dispute as a troubling trend in which workers who have counted on their private pensions are now seeing their benefits negotiated away.


Duncan Dee, Air Canada's chief operating officer and executive vice-president, also said the company hopes to reach a deal with its striking workers in advance of any political action from the federal government.


"Our priority still remains a negotiated settlement and we're hoping we will come to an agreement with our union," Dee told reporters at Macdonald-Cartier International Airport in Ottawa.


"Obviously, the government, as far as I understand, was expressing concern about the ability of Canadians to travel. We share that concern, which is the reason why we have put in place this contingency plan to try and keep Canadians moving."


Dee said 1,700 Air Canada managers are working at service counters and call centres, as well as existing staff from Garda World Security and other security companies that are also working to fill the void left by striking workers at Canadian airports.


Meanwhile, it appears the strike is complicating matters for the NDP as it prepares for its national policy convention in Vancouver this weekend.

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Facing the prospect of crossing a picket line or flying on a non-unionized airline, MPs will be choosing the latter to get to the event which kicks off Thursday.


"We'll be supporting our brothers and sisters who are on the strike," said party spokeswoman Kathleen Monk, who said many MPs will book on WestJet.


The CAW leadership submitted an amended proposal to Air Canada Tuesday to address pension concerns — the main sticking point in the dispute.


Negotiations came to a standstill Monday over a series of concessions management was seeking from the union.


Air Canada spokesman Peter Fitzpatrick said a "very good" offer dealing with pensions was put on the negotiating table by Air Canada Monday night, but said the union wasn't interested.


Fitzpatrick said both sides likely will take a "short pause to see where they are" and added that negotiators are anxious to get back to the table as soon as possible.


The airline currently has a $2.1-billion pension deficit, and was seeking to reduce the portion of that owed to CAW members by $244 million, union officials said.


Management had proposed increasing the minimum retirement age by five years, changing the funding formula and other measures to help achieve that goal. But those proposals were rejected by union leadership.

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The airline argues the pension changes are needed. Even though Air Canada managed to negotiate fixed rates of pension payments through to the end of 2013, those payments are set to swell to $550 million in 2014 based on current estimates, management has said.


The strike is the first for Air Canada since its pilots walked off the job in 1998, although it did face a brief wildcat strike in 2005 by ground crew workers that lasted four hours. Air Canada also must renegotiate labour contracts with its other employee groups this year.


The Air Canada Pilots Association will meet for the first time this week after recalling several of the union's leaders after a new tentative agreement was sent out for ratification that included, among other things, changes that would see new hires moved into a defined contribution pension plan and support for a new low-cost carrier to be launched with different wages and benefits for those employees.


The union representing the mechanics and ground crew, as well as its flight attendants' union, continue their negotiations with the airline.


With files from Tobi Cohen and the Financial Post


Barb Reid leads Air Canada customer service agents in chants as they protest outside of Terminal 1 at Toronto Pearson International Airport on Tuesday, June 14, 2011. The Harper government is signalling it will stop the Air Canada strike dead in its tracks, announcing Tuesday that it will table back-to-work legislation to end the labour disruption that began only hours earlier.