Reuters
UPDATE - Air Canada to shuffle pilot seniority lists
Tuesday June 17, 1:30 pm ET
By Charles Grandmont
(Adds details, background, quotes)
MONTREAL, June 17 (Reuters) - Air Canada (Toronto:AC.TO - News) said on Tuesday it will implement a labor board ruling on pilots'' seniority lists, even though the change is angering pilots who have already been asked to accept pay and job cuts to keep the insolvent airline aloft.
Air Canada wants to stay neutral because it''s an issue relating to union seniority, it''s not Air Canada''s responsibility, company spokeswoman Isabelle Arthur said.
The Canadian Industrial Relations Board gave Air Canada until Wednesday night to shuffle its seniority lists, which have been contested since the carrier''s takeover of floundering rival Canadian Airlines three years ago.
The divisive ruling comes as Air Canada''s 3,400 pilots are set to begin voting this week on a cost-cutting deal central to the airline''s restructuring.
We are actively encouraging our pilots to keep the two issues separated. Without an airline, there is not going to be a seniority list to worry about, David Coles, head of a committee representing pilots who flew with Air Canada before the merger with Canadian.
The seniority lists are crucial for pilots as they determine their pay and the type of aircraft they fly. Air Canada pilots say they will be unfairly bumped down the list by former Canadian Airlines pilots, who are generally older.
About a third of Air Canada''s 3,400 pilots previously flew with Canadian, and they contested an earlier ruling on seniority lists, which they felt was unfair.
The latest ruling, handed down on Monday, was rejected by the original Air Canada pilots as having tipped the balance the other way. They are now seeking a way to overturn it, even though both pilots groups had agreed to accept the ruling as final.
We will use whatever legal avenues we have available, Coles said.
The seniority issue could also determine which pilots stand to lose their jobs once Air Canada goes ahead with plans to retire some older and larger aircraft to reduce costs.
Air Canada has given all its unions until the end of the month to agree to labor cost reductions totaling C$1.1 billion ($820 million). The airline is losing C$5 million a day and the court-appointed monitor has warned the company could run out of money before it completes its restructuring.
UPDATE - Air Canada to shuffle pilot seniority lists
Tuesday June 17, 1:30 pm ET
By Charles Grandmont
(Adds details, background, quotes)
MONTREAL, June 17 (Reuters) - Air Canada (Toronto:AC.TO - News) said on Tuesday it will implement a labor board ruling on pilots'' seniority lists, even though the change is angering pilots who have already been asked to accept pay and job cuts to keep the insolvent airline aloft.
Air Canada wants to stay neutral because it''s an issue relating to union seniority, it''s not Air Canada''s responsibility, company spokeswoman Isabelle Arthur said.
The Canadian Industrial Relations Board gave Air Canada until Wednesday night to shuffle its seniority lists, which have been contested since the carrier''s takeover of floundering rival Canadian Airlines three years ago.
The divisive ruling comes as Air Canada''s 3,400 pilots are set to begin voting this week on a cost-cutting deal central to the airline''s restructuring.
We are actively encouraging our pilots to keep the two issues separated. Without an airline, there is not going to be a seniority list to worry about, David Coles, head of a committee representing pilots who flew with Air Canada before the merger with Canadian.
The seniority lists are crucial for pilots as they determine their pay and the type of aircraft they fly. Air Canada pilots say they will be unfairly bumped down the list by former Canadian Airlines pilots, who are generally older.
About a third of Air Canada''s 3,400 pilots previously flew with Canadian, and they contested an earlier ruling on seniority lists, which they felt was unfair.
The latest ruling, handed down on Monday, was rejected by the original Air Canada pilots as having tipped the balance the other way. They are now seeking a way to overturn it, even though both pilots groups had agreed to accept the ruling as final.
We will use whatever legal avenues we have available, Coles said.
The seniority issue could also determine which pilots stand to lose their jobs once Air Canada goes ahead with plans to retire some older and larger aircraft to reduce costs.
Air Canada has given all its unions until the end of the month to agree to labor cost reductions totaling C$1.1 billion ($820 million). The airline is losing C$5 million a day and the court-appointed monitor has warned the company could run out of money before it completes its restructuring.
