Socialist Worker | issue 531 | June 2011
LABOUR
CAW and USW Local 1976 Unit 613 members at Air Canada have voted 98 per cent in favour of strike action. The strike deadline for the CAW, representing 3,800 members, is June 13.
Workers are saying no to Air Canada’s proposed two-tier pension system that would see new employees contributing to a less generous pension plan. The proposal would also create a new low-cost airline to Europe and “sun” destinations that would see lower wage scales and work rules introduced.
“When Air Canada was in trouble and asked for help, we gave. It’s our time to make progress,” Jamie Ross president of CAW Local 2002 said. “The CEOs shouldn’t be the only ones compensated,” a reference to Air Canada president and CEO Calin Rovinescu, who earned $4.5 million in total compensation last year.
With the intention of assisting Air Canada through the economic crisis of 2008-2009, the workers and their unions agreed to the deferral of major pension contributions that would have otherwise been required under federal pension law.
Now with the company recovering it is demanding permanent reductions in pension benefits for existing employees and a demand to eliminate defined pension benefits altogether for new employees.
Workers have been made to pay the price for Air Canada’s faults with 20,000 layoffs since 2000 a reduction of 47 per cent of the workforce. Meanwhile, shareholders of the company have profited by $2 billion. The result has been understaffed airport terminals adding to the stress of the remaining workforce and the public.
The CAW is calling on the Canadian government to step in and stop Air Canada sell-offs, stop Air Canada from hiding its assets and force it to meet its obligations in its workers’ pension plans, regulate the airlines and buy shares in Air Canada. The union points out that most developing countries have public ownership in major airlines.
Hundreds of workers have rallied at targeted Air Canada sites. Air Canada is facing disputes with its three other unions, CUPE (which represents 6,800 flight attendants), the IAMAW (which represents 11,000 mechanics, baggage handlers, cargo agents and warehouse staff) and the Air Canada Pilots’ Association.