Arbitrator Sides With Air Canada Over Union Dispute

June 19, 2012
Airline's five-year agreement makes changes to pension plan for new ground handlers and mechanics

The lengthy and bitter labour dispute between Air Canada and the union representing their mechanics and baggage handlers ended Sunday, when the federal arbitrator sided with the airline.

Michel Picher approved the five-year collective agreement presented by Air Canada, which includes changes to the pension plan for new employees.

The airline says there will be no further comment as details of the contract are being communicated to its employees.

The decision comes after more than a year of failed negotiations between the International Association of Machinists and Aerospace Workers and the airline. Picher was appointed after the government passed back-to-work legislation sending both parties to binding arbitration in March, preventing the 8,600 union workers from striking.

However, later in the month a wildcat strike triggered by the suspension of some Air Canada workers for jeering Labour Minister Lisa Raitt resulted in chaos and cancelled flights at Toronto's Pearson International Airport.

The airline has also faced fierce contract disputes with its pilots union over the past year. After talks failed for the final time last month, both parties submitted their final offers to an arbitrator. That decision has yet to be announced.

Copyright 2012 Toronto Star Newspapers Limited