Air Canada's baggage handlers, ground crews and maintenance engineers at Pearson International Airport could walk off the job after they voted 65.6 per cent to reject a tentative agreement. They have also given the International Association of Machinists and Aerospace Workers - the largest union at Air Canada, with 8,600 members - a 78 per cent strike mandate, though no date has been set. The two sides were near the end of a 60-day conciliation period when the tentative deal was reached on Feb. 10.
Under the Canada Labour Code, that period can be extended if both parties agree. Otherwise, there is a 21-day cooling-off period; a strike or lockout can occur with 72 hours' notice.
"At this point, all I can say is I will be meeting with the local lodge presidents to decide what are our next steps," said Chuck Atkinson, president of Transportation District 140 of the union.
In a statement released yesterday Air Canada said it was business as usual for the airline, adding it was "confident there is sufficient time for the parties to avoid a disruption."
The deal was rejected though the negotiating team unanimously recommended acceptance of the four-year deal that included wage and benefit improvements. Union officials declined to identify the stumbling block. However, it mirrors a pattern at Air Canada where tentative agreements are reached and recommended for acceptance by union leaders, then rejected by the rank and file membership.
In the past year, pilots rejected a deal that called for two-tier pensions and the possible creation of a low-cost airline that would mean lower pay and different work rules. The airline's flight attendants twice rejected tentative deals, and were blocked from walking off the job last fall by Labour Minister Lisa Raitt.
Air Canada is eager to resolve its labour issues, because any hint of a possible disruption can affect bookings. It has recently settled with its smaller unions, including those that represent flight dispatchers, inflight and crew schedulers. Tensions in the pilots' dispute ramped up last week with a legal strike and lockout deadline, and the two sides remain far apart.
In an effort to reach a deal, Raitt extended mediation for six months and appointed former Quebec Judge Louise Otis to help resolve the dispute, citing her experience in securing the tentative settlement with Air Canada's baggage handlers and machinists. That was the deal that has just been voted down. Otis is now expected to file a report to Raitt "for consideration and determining next steps."
In the case of the flight attendants, the two sides eventually agreed to binding arbitration, and an arbitrator imposed the contract that the flight attendants had rejected. Air Canada's employees, who made significant concessions in the past decade when the airline was on the brink of bankruptcy, were counting on making gains in this round of bargaining. They also know Ottawa will step in to ensure flights are not grounded. Raitt threatened to legislate customer service agents back to work last June, prompting a quick settlement.
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