At Air Canada, the CAW customer sales and service agents have had their staffing levels slashed while providing significant increased productivity improvements, while their quality of work-life has been steadily deteriorating.
According to our CAW economist; Jim Stanford, "It has been a decade of perpetual crisis in the airline industry and workers were not allowed to bargain normally; workers' real wages have declined 10 per cent since 2000, while Air Canada's CEOs have been paid tens of millions of dollars in compensation.
Robert Milton scooped $86 million in 10 years while the current CEO, Calin Rovinescu got a 76 per cent increase in 2010 (up from $2.58 million in 2009 to $4.55 million in 2010), $2.3 million more on appreciation of shares, guaranteed 1 per cent ownership of the company and a $5 million retention bonus (if he stays until March 2012). His defined benefit pension has a $3.1 million accrued liability. Rovinescu's hourly wage is $1094.00 per hour (based on an 80 hour work week).
Before you worry about him being overworked, compare his rate with an Air Canada CAW member's hourly wage, which in real wages, has decreased over one per cent per year (over the last ten years). These payouts reflect the hypocrisy and misplaced priorities of Air Canada leadership.
The airline's financial situation has improved dramatically in the past year and it is clear that their employees are an integral part of that success. There is no economic or moral argument against CAW members making solid progress (in this contract)."
One of the major obstacles in our quest for a "fair deal" in collective bargaining is the pressure that all the unions are facing at Air Canada; our Defined Benefit Pension Plan. The employees have always paid their pensions as required; but due to the downturn in the economy, everyone's pension plans were affected.
After filing for bankruptcy, Air Canada's entire unionized workforce took concessions to help Air Canada survive. Then in the 8th year after bankruptcy; we were right back staving off bankruptcy again and once again the unionized workforce extended our Collective Agreement for 21 months, with minimal gains and to show stability over the Vancouver 2010 Olympics.
Now, the 21 months are over and Air Canada is threatening our pensions again, with the words of "bankruptcy" again on their lips.
The Federal Government is not absolved from its important role;, since deregulation in 1987, the airline industry in Canada has been in turmoil. In addition, the Office of the Superintendent of Financial Institutions in Canada allowed Air Canada to take pension holidays from it's obligation to funding the Air Canada Pension plan; which along with the economic downturn caused a deficit to our pension plan. The employees paid into the pension plan; as required, and now through no fault of their own are asked to take the brunt of the mistakes that Management has done to their pension plans; while in the meantime handsomely rewarding themselves in the process.
The Air Canada Management philosophy is now rewarding the shareholders and themselves instead of taking care of the longevity of the company and their employees; while in the meantime using bankruptcy as a means of a business plan as opposed to the real reason it was intended for, while offering a pittance to it's unionized employees.
We have done more than our part to help but Air Canada has pushed the house of labour to the limit and enough is enough!
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Fair Deal Rallyby Cawkim1,676 views
Air Canada has never been blessed wit a particularly bright management but never in its history has it been run by such a self-serving group as it has now under Calvin Rovenescue. It seems to be a sign of the times.CEOs and their upper level managements hold their own workforces in contempt while gutting the companies they run. They perhaps feel there is a reckoning coming and seek to insulate themselves with wealth.
benalbanach 8 months ago
Great to see this. Go for it. Keep that pension.
heidi491 8 months ago
Air Canada's executives have sucked the value out of the company and extracted concessions from its employees under threat of bankruptcy. This disgusting behaviour destroys value, undermines equality, and in the end creates economic instability. It is also immoral as it takes resources from those who create wealth and move it to the parasite class. Maximum respect for CAW for being the first Union at Air Canada to say "Enough is enough." We stand behind you in this fight.
Local416 8 months ago