Air Canada opts for conciliation

Air Canada has filed an official notice of dispute with the federal government to get conciliators involved in labour negotiations with its pilots, in an effort to accelerate a second round of talks.

The carrier's 2,900 pilots rejected a tentative agreement by a two-to-one margin in May.

"In view of the time elapsed since then, the company is of the view that the involvement of a federally appointed conciliator would facilitate and expedite this second round of negotiation and bring it to a successful conclusion as soon as possible," said spokesman Peter Fitzpatrick.

Last week, the pilots proposed a date to resume talks in the fall, but the Montreal-based carrier caught the employees off guard by filing the notice Wednesday.

Pilots association president Capt. Paul Strachan said they had been working over the past six months to prepare proposals that could be the basis of a new negotiated settlement.

"We are disappointed that Air Canada has chosen to escalate the situation before we returned to the bargaining table," he said in a statement.

He urged the airline to resume talks to negotiate a new collective agreement.

Air Canada's move starts the clock ticking to a potential strike even though the federal government has threatened to intervene with other employee groups at the airline. The conciliation process lasts up to 60 days unless extended.

The parties have the right to strike or lockout 21 days after conciliation ends and must give 72 hours advance notice. To strike, a union must have taken a strike vote in the last 60 days. The Minister of Labour usually appoints a mediator to achieve a collective agreement without a strike after conciliation has ended.

Among the key issues is Air Canada's desire to launch a low-cost carrier that it says will create jobs for 462 pilots, three times as many flight attendants and some airport and maintenance positions.

Air Canada is to enter its second arbitration hearing on Friday.