Wed, May 19, 2004
Air Canada, Five Unions, Reach Agreement
It's a deal that Canadian media
types could just save Air Canada. The airline and five of its
unions say they've reached a deal to cut costs in hopes of keeping
the company's bankruptcy from turning into outright
In one agreement, the Teamsters' Union, which represents flight
attendants aboard Air Canada's low-cost subsidiary, Jazz, have
finally agreed to a contract with the company.
"I sincerely thank our employees and representatives from CALDA
and Teamsters Canada for their professionalism as we progress
through this very important stage of Air Canada's restructuring,"
Joseph Randell, president of Air Canada Jazz, said in a news
release on Sunday.
Unions representing machinists, pilots and dispatchers have also
reportedly come to terms with Air Canada. Jazz dispatchers said
they reached a deal on Saturday.
The very future of Air Canada and
Jazz hangs upon agreements like these. The airline needs to cut
$200 million in labor costs if it is to survive.
"We have always said that Air Canada's pilots were committed to
see our company emerge from the restructuring process as a
stronger, more efficient airline, poised to be competitive in an
increasingly difficult market," Capt. Don Johnson, president of the
3,000-member Air Canada Pilots Association said in a statement
early Sunday. "This recent agreement further demonstrates this
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