Air Canada mechanics call for job assurances

TRANSPORTATION REPORTER

Mechanics at Air Canada's Montreal, Winnipeg and Vancouver hangars want assurances that their jobs won't be transferred to El Salvador, a key demand as labour talks resume today in an effort to revive the cash-strapped airline's recovery plans.

Employees in the three cities have been told that their positions are safe for the next 21 months, but are eager to see job security in the longer term, said Lorne Hammerberg, the Winnipeg-based president of Local 714 of the International Association of Machinists and Aerospace Workers (IAMAW).

The Canadian workers most at risk are those assigned to airframe heavy maintenance projects, which involve labour-intensive scheduled checks and inspections of aircraft, Mr. Hammerberg said yesterday.

Air Canada spokesman Peter Fitzpatrick said management will meet with senior IAMAW officials today "to explore next steps in order to achieve a successful conclusion."

Aveos Fleet Performance Inc., formerly named Air Canada Technical Services, has more than 1,400 employees in the El Salvador capital of San Salvador. ACE Aviation Holdings Inc. owns 75 per cent of Air Canada and 27.8 per cent of Aveos, which is a sister company of the airline.

Last month, the IAMAW won the battle to keep more than 3,000 Aveos workers in Canada on a tentative collective agreement with Air Canada, but only for the next 21 months.

Earlier this week, members of Air Canada's largest bargaining unit narrowly rejected the proposed labour deal, effectively blocking management's plans to ask Ottawa for a pension funding moratorium. The IAMAW's technical, maintenance and operational support unit voted 50.8 per cent against the tentative labour pact that would have frozen their wages until March 31, 2011. Mechanics, baggage handlers, cargo agents and cleaners are part of the unit, which has about 11,700 members.

Mr. Hammerberg said that if the contract language could extend job security beyond 2011, then "a tweaking of the contract and a revote could be in order." It's also possible that the IAMAW could hold another vote without substantial changes, given the low voter turnout the first time.

Aveos spokesman Michael Kuhn said yesterday that the Aveos-run Aeroman hangar in San Salvador is already booked solid for the next four years, and could expand as customer demand grows for narrow-body aircraft repairs.

Aeroman's existing contracts include carriers such as Dallas-based Southwest Airlines Co.

Mr. Hammerberg also said in an interview yesterday that the IAMAW wants to clarify what it meant by threats Wednesday to strike during the Vancouver 2010 Winter Olympics.

He said any strike would be a last resort, and union leaders are willing to first hold discussions with management with the help of mediator James Farley, if needed.

"We know full well how detrimental a strike during the Olympics would be to the Canadian economy, but what's Air Canada doing now to avert that? We'll use any method necessary, within reason, to get our demands met," said Mr. Hammerberg, toning down previous threats of labour unrest during the Olympics.

Air Canada needs the backing of all of its unions before it is able to ask Ottawa for pension relief and also secure $600-million in loans needed to avoid filing for bankruptcy protection.

"It's a house of cards. The unions have to agree before Air Canada can go to Ottawa," said David Newman, an analyst at National Bank Financial Inc. "The reality is this airline is facing bankruptcy protection."

Export Development Canada, a federal Crown corporation, is expected to contribute $250-million in loans, while ACE could chip in up to $150-million. The group of lenders may include Groupe Aeroplan Inc., General Electric Co. and Canadian Imperial Bank of Commerce.

AIR CANADA (AC.B)

Close: $1.41, down 1¢